FAIRVIEW BOARD OF EDUCATION
COUNTY OF BERGEN, NEW JERSEY
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED
JUNE 30, 2015
FAIRVIEW BOARD OF EDUCATION
FAIRVIEW BOARD OF EDUCATIONFairview, New Jersey
Comprehensive Annual Financial ReportYear Ended June 30, 2015
Comprehensive Annual Financial Report
of the
FAIRVIEW BOARD OF EDUCATIONFairview, New Jersey
Year Ended June 30, 2015
Prepared by
Patrick CaufieldBoard Secretary/Business Administrator
OUTLINE OF CAFR
INTRODUCTORY SECTION
Letter of Transmittal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Organizational Chart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Roster of Officials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Consultants and Advisors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
FINANCIAL SECTION
Independent Auditor's Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Required Supplementary Information - Part I
Management’s Discussion and Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
BASIC FINANCIAL STATEMENTS
A. District-wide Financial Statements:
A-1 Statement of Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
A-2 Statement of Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
B. Fund Financial Statements:
Governmental Funds:
B-1 Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
B-2 Statement of Revenues, Expenditures and Changes in Fund Balances . . . . . . . . . . . . 25
B-3 Reconciliation of the Statement of Revenues, Expenditures, and
Changes in Fund Balances of Governmental Funds to the
Statement of Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Proprietary Funds:
B-4 Statement of Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
B-5 Statement of Revenues, Expenses and Changes in Fund Net Position . . . . . . . . . . . . . 28
B-6 Statement of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Fiduciary Funds:
B-7 Statement of Fiduciary Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Notes to the Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
OUTLINE OF CAFR
Required Supplementary Information - Part II
C. Budgetary Comparison Schedules:
C-1 Budgetary Comparison Schedule - General Fund . . . . . . . . . . . . . . . . . . . . . . . . . . 63
C-1a Not Applicable
C-2 Budgetary Comparison Schedule - Special Revenue Fund . . . . . . . . . . . . . . . . . . . 67
Notes to the Required Supplementary Information
C-3 Budgetary Comparison Schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
Required Supplementary Information - Part III
L. Schedules Related to Accounting and Reporting for Pensions (GASB 68)
L-1 Schedule of the District's Proportionate Share of the Net Pension
Liability – PERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
L-2 Schedule of District Contributions – PERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
L-3 Schedule of the District's Proportionate Share of the Net Pension
Liability – TPAF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
L-4 Notes to Requires Schedules of Supplementary Information - Part III . . . . . . . . . . 72
Other Supplementary Information
D. School Level Schedules:
Not Applicable
E. Special Revenue Fund:
E-1 Combining Schedule of Program Revenues and Expenditures -
Budgetary Basis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
E-1a Combining Schedule of Program Revenues and Expenditures -
Budgetary Basis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
E-1b Combining Schedule of Program Revenues and Expenditures -
Budgetary Basis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
E-2 Schedule of Preschool Education Aid - Budgetary Basis . . . . . . . . . . . . . . . . . . . . . 76
F. Capital Projects Fund:
F-1 Summary Schedule of Revenues, Expenditures and Changes
In Fund Balances - Budgetary Basis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
F-1a Schedule of Project Revenues, Expenditures and Project Status
Budgetary Basis - Lincoln School Bathroom . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
F-1b Schedule of Project Revenues, Expenditures and Project Status
Budgetary Basis - Lincoln School Window Replacement . . . . . . . . . . . . . . . . . . 79
OUTLINE OF CAFR
F-1c Schedule of Project Revenues, Expenditures and Project Status
Budgetary Basis - Lincoln School Roof . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
F-2 Summary Schedule of Project Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
G. Proprietary Funds:
Enterprise Fund:
G-1 Combining Statement of Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
G-2 Combining Statement of Revenues, Expenses and Changes in
Fund Net Position - Enterprise Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
G-3 Combining Statement of Cash Flows - Enterprise Funds . . . . . . . . . . . . . . . . . . . . 84
Internal Service Fund:
Not Applicable
H. Fiduciary Funds:
H-1 Combining Statement of Fiduciary Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
H-2 Not Applicable
H-3 Student Activity Agency Fund - Schedule of Receipts and Disbursements . . . . . . . . . 86
H-4 Payroll Agency Fund - Schedule of Receipts and Disbursements . . . . . . . . . . . . . . . . 87
H-5 Region VI Agency Fund - Schedule of Receipts and Disbursements . . . . . . . . . . . . . . 88
I. Long-Term Debt:
I-1 Statement of Serial Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89
I-2 Schedule of Capital Leases Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90
I-3 Debt Service Fund - Budgetary Comparison Schedule . . . . . . . . . . . . . . . . . . . . . . . . 94
J. Statistical Section (Unaudited)
Financial Trends
J-1 Net Position by Component . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
J-2 Changes in Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
J-3 Fund Balances - Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98
J-4 Changes in Fund Balances - Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
J-5 General Fund Other Local Revenue by Source . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
Revenue Capacity
J-6 Assessed Value and Estimated Actual Value of Taxable Property . . . . . . . . . . . . . . . . 102
J-7 Direct and Overlapping Property Tax Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103
J-8 Principal Property Taxpayers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
J-9 Property Tax Levies and Collections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
OUTLINE OF CAFR
Debt Capacity
J-10 Ratios of Outstanding Debt by Type . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106
J-11 Ratios of General Bonded Debt Outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107
J-12 Direct and Overlapping Governmental Activities Debt . . . . . . . . . . . . . . . . . . . . . . . . 108
J-13 Legal Debt Margin Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109
J-14 Demographic and Economic Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110
J-15 Principal Employers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111
Operating Information
J-16 Full-time Equivalent District Employees by Function/Program . . . . . . . . . . . . . . . . . . 112
J-17 Operating Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
J-18 School Building Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114
J-19 Schedule of Allowable Maintenance Expenditures by School Facility . . . . . . . . . . . . 115
J-20 Insurance Schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116
K. SINGLE AUDIT SECTION
K-1 Independent Auditor’s Report on Internal Control Over Financial Reporting
and on Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance With Government Auditing Standards . . . . . 117
K-2 Independent Auditor’s Report on Compliance with Requirements Applicable to
Each Major Federal and State Program and Internal Control Over
Compliance in Accordance with OMB Circular A-133 and N.J. OMB
Circular Letter 04-04 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119
K-3 Schedule of Expenditures of Federal Awards - Schedule A . . . . . . . . . . . . . . . . . . . . . 122
K-4 Schedule of Expenditures of State Financial Assistance - Schedule B . . . . . . . . . . . . . 123
K-5 Notes to the Schedules of Expenditures of Federal Awards and
State Financial Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125
K-6 Schedule of Findings and Questioned Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127
K-7 Summary Schedule of Prior Audit Findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130
INTRODUCTORY SECTION
FAIRVIEW PUBLIC SCHOOLS
Dr. David Sleppin Telephone: 201 / 943 - 0564
Superintendent of Schools Fax: 201 / 840 - 7754
130 Hamilton Avenue E-mail: [email protected]
Fairview, NJ 07022
November 9, 2015
Honorable President and Members of the Fairview Board of Education
Fairview Public Schools
130 Hamilton Avenue
Fairview, New Jersey 07022
Dear Board Members,
The Comprehensive Annual Financial Report of the Fairview School District for the
fiscal year ended June 30, 2015 is hereby submitted. Responsibility for the accuracy of
the data and completeness of the presentation lies with the management of the district. It
is our belief that the data contained in this report is accurate and is reported in a manner
designed to present a clear picture of the financial position and results of operations of
the various funds of the district. All disclosures necessary to enable the reader to gain an
understanding of district financial activities have been included.
The Government Accounting Standards Board (GASB) requires the district to provide a
narrative introduction, an overview, and an analysis to accompany the basic financial
statements in the form of Management’s Discussion and Analysis (MD&A). This letter
of transmittal can be found immediately following the “Independent Auditors’ Report”.
The Comprehensive Annual Financial Report is presented in four sections: introduction,
financial, statistical, and single audit. The introduction includes this transmittal letter and
lists principal officials. The financial section includes the independent auditors’ report,
management’s discussion and analysis, the basic financial statements including the
district financial statements in an effort to conform to the Governmental Accounting
Standards Board Statement Number 34. The basic financial statements also include the
individual fund financial statements, notes to the basic financial statements, and required
supplemental information. The statistical section includes selected financial and
demographic information.
The district is required to have an annual single audit in order to conform with the
provisions of the Single Audit Act and the U.S. Office of Management and Budget
Circular A-133, “Audits of States, Local Governments and Non-Profit Organizations”
and the State Treasury Circular Letter 04-04 OMB, “Single Audit Policy for Recipients
of Federal Grants and State Aid Payments”. Information related to this audit, including
the auditors’ report on the internal control structure and compliance with applicable laws
and regulations and a schedule of findings and questioned costs are included in the
supplementary section of this report.
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1. Reporting Entity and its Services: The Fairview Public School District is an
independent reporting entity within the criteria adopted by the Governmental Accounting
Standard Board as established by GASB Statement No. 14. All funds of the district are
included in this report.
The district provides a full range of educational services appropriate to grade levels Pre-
K through eight. These services include regular, as well as special education for students
with disabilities. The fiscal year concluded with an enrollment of 1293 students. This
number represents an increase of twenty (20) students from the previous fiscal year. The
following is a view of the district enrollment for the last ten years.
Average Daily Enrollment
Year Enrollment Percent 2005-2006 1013 ---
2006-2007 1005 (0.80)
2007-2008 1051 4.58
2008-2009 1043 (.76)
2009-2010 1115 6.9
2010-2011 1148 3.0
2011-2012 1196 4.2
2012-2013 1203 .06
2013-2014 1273 5.8
2014-2015 1293 1.6
2. Economic Condition and Outlook: The community of Fairview continues to see
substantial growth in the multi-family housing market. As a result of this growth the
school district is experiencing an influx of students at all levels. Over the ten year period
from the 2005-2006 school year to the present, the overall student population has
increased by 27.6% or 280 additional elementary school students. The overall district
enrollment is expected to continue to increase over the next few years.
3. Major Initiatives: During the 2013-2014 the district made an effort prepare students
for the administration of the PARCC (Partnership for Assessment of Readiness for Career
and College). This effort involved increasing technology available to students in the
classroom and upgrading the technology infrastructure. The district is currently awaiting
the results of the PARCC test administered during the 2014-2015 school year.
In addition, the district continued its lease agreement with the Newark Archdiocese for
what was formerly St. John the Baptist School located at 240 Fourth Street, Fairview,
N.J. This building currently houses all first grade students in the Fairview Public School
District.
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4. Internal Accounting Controls: District management is responsible for establishing
and maintaining structure designed to ensure district assets are safe from loss, misuse or
theft and to ensure that accurate accounting data are compiled when preparing financial
statements which conform to generally accepted accounting practices. The internal
control structure provides reasonable, but not absolute, assurance that the objectives are
met.
As a recipient of federal and state funds, the Fairview School District is also responsible
to ensure compliance with laws and regulations related to those programs. The district
internal control structure must also be periodically evaluated by the district management.
Part of the district’s single audit requires tests to determine the accuracy of the internal
control structure. This in an effort to ensure the district is in compliance with laws and
regulations regarding federal and state funding programs.
5. Budgetary Controls: The district maintains budgetary controls, in addition to
internal accounting controls, in an effort to ensure compliance with legal provisions in the
annual appropriated budget. Annual budgets are adopted for the general debt service and
special revenue funds. The final budget amounts are reported in the financial section.
An encumbrance accounting system is used to record outstanding purchase commitments
on a line item basis. Open encumbrances at year-end are either cancelled or are included
as re-appropriation of fund balance in the subsequent year. The funds that are to be re-
appropriated are reported as reservations of fund balance on June 30, 2015.
6. Debt Administration: As of June 30, 2015, the district outstanding debt issues
included a total of $225,000 in Pension Refunding Bonds.
7. Cash Management: The district investment policy is in accordance with the state
statute detailed in the “Notes to the Financial Statements”. The district cash management
plan requires it to deposit public funds in institutions protected from loss under the
GUDPA (Governmental Units Deposit Protection Act) which was enacted in 1970 to
protect Governmental Units from loss of funds on deposit with a failed bank in the state
of New Jersey.
8. Risk Management: The Fairview Board of Education is covered by a variety of
insurance forms. These include general liability, auto liability and collision, hazard and
theft insurance on buildings and other property (including contents) and fidelity bonds.
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9. Other Information: The district is required to conduct an annual audit conducted by
an independent certified public accountant or registered municipal accountant. The
Fairview Board of Education currently employs the services of Ferraioli, Wielkotz,
Cerullo & Cuva, P.A. as our independent accounting firm. The audit is performed and
designed to meet the requirements of the Single Audit Act and the related OMB Circular
A-133 and State Treasury Circular Letter 04-04 OMB. The report on basic financial
statements and schedules is included in the financial section of the report. The auditors’
report specifically related to the single audit is included in that section of this report.
10. Acknowledgements: The administration wishes to express their gratitude to the
Fairview Board of Education for their efforts in providing fiscal accountability and
stability to the children, parents and taxpayers of the borough of Fairview. With the
support of the Fairview Board of Education, the district has been able to develop and
maintain a stable financial base. In addition, the administration wishes to acknowledge
the efforts of the Business Administrator and his staff for their dedicated service to the
Fairview Public School District.
Respectfully submitted,
David S. Sleppin
Dr. David S. Sleppin
Superintendent of Schools
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Members of the Board of Education Term Expires
Jhon Gomez 2016Louis Aveta 2017Yara Betancourt 2015Martin Booth 2015Francisco Martinez 2016Louis Lynaugh 2017Diane Testa 2016Maria Travers 2017
Louis De Lisio, Ph.D., Superintendent
Partick Caufield, School Business Administrator/Board Secretary
FAIRVIEW BOARD OF EDUCATION
ROSTER OF OFFICIALS
JUNE 30, 2015
Other Officials
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Architect of Record
GEORGE HELD & ASSOCIATES, AIA457 Crooks AvenueClifton, NJ 07011
Fairview, NJ 07022
Pompton Lakes, New Jersey 07442
Official Depository
GSL Bank
STEVEN D. WIELKOTZ, C.P.A.401 Wanaque Avenue
215 Bergen Blvd
District Auditor
Stephen F. Pellino, Esq.Basile, Birchwale and Pellino
865 Broad AvenueRidgefield, NJ 07657
FAIRVIEW BOARD OF EDUCATION
CONSULTANTS & ADVISORS
JUNE 30, 2015
Attorney
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FINANCIAL SECTION
Ferraioli, Wielkotz, Cerullo & Cuva, P.A.
Charles J. Ferraioli, Jr., MBA, CPA, RMA Certified Public Accountants Newton Office Steven D. Wielkotz, CPA, RMA 401 Wanaque Avenue 100B Main Street James J. Cerullo, CPA, RMA Pompton Lakes, New Jersey 07442 Newton, NJ 07860Paul J. Cuva, CPA, RMA 973-835-7900 973-579-3212Thomas M. Ferry, CPA, RMA Fax 973-835-6631 Fax 973-579-7128
INDEPENDENT AUDITOR'S REPORT
Honorable President and
Members of the Board of Education
Fairview Board of Education
Fairview, New Jersey
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-
type activities, each major fund and the aggregate remaining fund information of the Fairview Board of
Education, in the County of Bergen, State of New Jersey, as of and for the year ended June 30, 2015,
and the related notes to the financial statements, which collectively comprise the District’s basic
financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatements, whether due to fraud or
error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America, the audit requirements prescribed by the Office of School Finance, Department of Education,
State of New Jersey, and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement.
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Honorable President and
Members of the Board of Education
Page 2.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity’s
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, business-type activities, each major fund,
and the aggregate remaining fund information of the Fairview Board of Education, in the County of
Bergen, State of New Jersey, as of June 30, 2015, and the respective changes in financial position and,
where applicable, cash flows thereof for the year then ended in accordance with accounting principles
generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
Management’s Discussion and Analysis, Budgetary Comparison Information, and schedules related to
accounting and reporting for pensions (GASB 68) identified in the table of contents be presented to
supplement the basic financial statements. Such information, although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board who considers it to be an
essential part of the financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the United
States of America, which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with management’s responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We do not express an opinion or provide any assurance on the information
because the limited procedures do not provide us with sufficient evidence to express an opinion or
provide any assurance.
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Honorable President and
Members of the Board of Education
Page 3.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the Fairview Board of Education’s basic financial statements. The introductory
section, combining and individual nonmajor fund financial statements, and schedule of expenditures of
federal awards, as required by Office of Management and Budget Circular A-133, Audits of States,
Local Governments, and Non-Profit Organizations and the schedule of expenditures of state financial
assistance as required by NJ OMB 04-04 and the introductory section and statistical section are
presented for purposes of additional analysis and are not a required part of the basic financial
statements.
The combining and individual nonmajor fund financial statements, and the schedule of expenditures of
federal awards, as required by Office of Management and Budget Circular A-133, Audits of States,
Local Governments, and Non-Profit Organizations, and the schedule of expenditures of state financial
assistance as required by NJ OMB 04-04 are the responsibility of management and were derived from
and relates directly to the underlying accounting and other records used to prepare the basic financial
statements. Such information has been subjected to the auditing procedures applied in the audit of the
basic financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic financial
statements or to the basic financial statements themselves, and other additional procedures in
accordance with auditing standards generally accepted in the United States of America. In our opinion,
the combining and individual nonmajor fund financial statements, schedule of expenditures of federal
awards, as required by Office of Management and Budget Circular A-133, Audits of States, Local
Governments, and Non-Profit Organizations, and the schedule of expenditures of state financial
assistance as required by NJ OMB 04-04 are fairly stated, in all material respects, in relation to the basic
financial statements as a whole.
The introductory section and statistical data section has not been subject to the auditing procedures
applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or
provide any assurance on it.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated November 9,
2015 on our consideration of the Fairview Board of Education’s internal control over financial reporting
and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant
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Honorable President and
Members of the Board of Education
Page 4.
agreements and other matters. The purpose of that report is to describe the scope of our testing of
internal control over financial reporting and compliance and the results of that testing, and not to
provide an opinion on internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards in considering
the Fairview Board of Education’s internal control over financial reporting and compliance.
Steven D. WielkotzSteven D. WielkotzSteven D. WielkotzSteven D. Wielkotz
Steven D. Wielkotz, C.P.A.
Licensed Public School Accountant
No. 816
Ferraioli, Wielkotz, Cerullo & Cuva, P.A.Ferraioli, Wielkotz, Cerullo & Cuva, P.A.Ferraioli, Wielkotz, Cerullo & Cuva, P.A.Ferraioli, Wielkotz, Cerullo & Cuva, P.A.
FERRAIOLI, WIELKOTZ, CERULLO & CUVA, P.A.
Certified Public Accountants
Pompton Lakes, New Jersey
November 9, 2015
-11-
REQUIRED SUPPLEMENTARY
INFORMATION - PART I
FAIRVIEW BOARD OF EDUCATIONFAIRVIEW, NJ
MANAGEMENT’S DISCUSSION AND ANALYSISFOR THE FISCAL YEAR ENDED JUNE 30, 2015
UNAUDITED
The discussion and analysis of the Fairview Board of Education’s financial performance provides an overallreview of the School District’s financial activities for the fiscal year ended June 30, 2015. The intent of thisdiscussion and analysis is to look at the District’s financial performance as a whole and should not beinterpreted as a replacement for the audit which consists of the financial statements and other supplementalinformation that presents all the District’s revenues and expenditures by program for the General Fund,Special Revenue Fund, Debt Service and Enterprise Fund.
FINANCIAL HIGHLIGHTS
• In total, net position increased by $413,600. Net position of governmental activities increased$406,088 while net position of business-type activities increased by $7,512.
• General revenues accounted for $24,782,336 in revenue or 93 percent of all district revenues. Program specific revenues in the form of charges for services and sales, grants and contributionsaccounted for $1,898,481 or 7 percent of total revenues of $26,682,460.
• The School District had $26,267,217 in expenses related to governmental and business-typeactivities; only $1,898,481 of these expenses were offset by program specific charges for services,grants or contributions. General revenues (primarily grants, entitlements and property taxes) of$24,782,336 were adequate to provide for these programs.
USING THIS ANNUAL REPORT
This annual report consists of a series of financial statements and notes to those statements. The statementsare organized so the reader can understand the District as a whole (government-wide statements), and thenproceed to provide an increasingly detailed look at specified financial activities.
District-Wide Financial Statements
The statement of net position and statement of activities reports information about the District as a wholeand about its activities in a manner that helps answer the question, “Is the District better or worse off as aresult of the year’s activities?” These statements include all assets and liabilities of the District using theaccrual basis of accounting, similar to the accounting used by private sector corporations. All of the currentyear’s revenues and expenses are taken into consideration regardless of when cash is received or paid.
Both of the district-wide financial statements distinguish functions of the Fairview Board of Education thatare principally supported by taxes and intergovernmental revenues (governmental activities) from otherfunctions that are intended to recover all or a significant portion of their costs through user fees and charges(business-type activities).
-12-
FAIRVIEW BOARD OF EDUCATIONFAIRVIEW, NJ
MANAGEMENT’S DISCUSSION AND ANALYSISFOR THE FISCAL YEAR ENDED JUNE 30, 2015
UNAUDITED (CONTINUED)
USING THIS ANNUAL REPORT, (continued)
In the Statement of Net Position and the Statement of Activities, the District is divided into two distinct kindsof activities:
C Governmental Activities – All of the school district’s programs and services are reported hereincluding instruction, support services, operation and maintenance of plant facilities, pupiltransportation and extracurricular activities.
C Business-type Activity – This service is provided on a charge for goods and services basis to recoverall the expenses of the goods or services provided. The Food Service Fund is reported as a business-type activity.
The two statements report the District’s net position and changes in them. The change in net position canbe utilized by a reader to assist in determining whether the District’s financial health is improving ordeteriorating. However, the reader should also consider non-financial factors such as property tax base,current New Jersey laws restricting revenue growth, student enrollment growth, facility conditions, requirededucational programs and other factors in determining the District’s overall financial health.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have beensegregated for specific activities or objectives. The Fairview Board of Education, like other state and localgovernments, uses fund accounting to ensure and demonstrate compliance with finance-related legalrequirements. All of the district’s funds can be divided into three categories: Governmental Funds,Proprietary Funds and Fiduciary Funds.
Governmental Funds
Governmental funds are used to account for essentially the same functions reported as governmentalactivities in the government-wide financial statements. However, unlike the district-wide financialstatements, governmental fund financial statements focus on near-term inflows and outflows of spendableresources, as well as on balances of spendable resources available at the end of the fiscal year. These fundsare reported using an accounting method called modified accrual accounting, which measures cash and allother financial assets that can be readily converted to cash.
Because the focus of governmental funds is narrower than that of the district-wide financial statements, itis useful to compare the information presented for governmental funds with similar information presentedfor governmental activities in the government-wide financial statements. By doing so, readers may betterunderstand the long-term impact of the District’s near-term financing decisions. Both the governmental fundbalance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balancesprovide a reconciliation to facilitate this comparison between governmental funds and governmentalactivities (reported in the Statement of Net Position and the Statement of Activities).
-13-
FAIRVIEW BOARD OF EDUCATIONFAIRVIEW, NJ
MANAGEMENT’S DISCUSSION AND ANALYSISFOR THE FISCAL YEAR ENDED JUNE 30, 2015
UNAUDITED (CONTINUED)
USING THIS ANNUAL REPORT, (continued)
The Fairview Board of Education maintains three individual governmental funds. Information is presentedseparately in the governmental fund balance sheet and in the governmental statement of revenues,expenditures and changes in fund balances for the general, special revenue and debt service funds, whichare both considered to be major funds.
The Fairview Board of Education adopts annual appropriated budgets for its governmental funds. Abudgetary comparison statement has been provided for the general fund, special revenue fund and debtservice fund to demonstrate compliance with their budgets.
Proprietary Funds
Proprietary funds use the accrual basis of accounting, the same as on the district-wide statements, thereforethe statements will essentially match the business-type activities portion of the district-wide statements. TheFairview Board of Education uses proprietary funds to account for its food service program.
Fiduciary Funds
Fiduciary funds are used to account for resources held for the benefit of parties outside the District. Theseactivities are excluded from the District’s other financial statements because the assets cannot be utilizedby the District to finance its operations.
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in thegovernment-wide and fund financial statements.
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents certainrequired supplementary information concerning budgetary information for the District’s major funds.
Our auditor has provided assurance in his independent auditor’s report, located immediately preceding thisManagement’s Discussion and Analysis, that the Basic Financial Statements are fairly stated. Varyingdegrees of assurance are being provided by the auditor regarding the Required Supplemental Informationand the Supplemental Information identified above. A user of this report should read the independentauditor’s report carefully to ascertain the level of assurance being provided for each of the other parts in theFinancial Section.
-14-
FAIRVIEW BOARD OF EDUCATIONFAIRVIEW, NJ
MANAGEMENT’S DISCUSSION AND ANALYSISFOR THE FISCAL YEAR ENDED JUNE 30, 2015
UNAUDITED (CONTINUED)
DISTRICT-WIDE FINANCIAL ANALYSIS
The Statement of Net Position provides the perspective of the District as a whole. Net position may, over time,serve as a useful indicator of a government’s financial position.
The District’s financial position is the product of several financial transactions including the net results of activities,the acquisition and payment of debt, the acquisition and disposal of capital assets and the depreciation of capitalassets.
The School District’s net positions were $2,555,341 at June 30, 2015 and $5,673,788 at June 30, 2014. Restricteditems of net position are reported separately to show legal constraints that limit the School District’s ability to usethose items of net position for day-to-day operations. Our analysis below focuses on the net position for 2015compared to 2014 (Table 1) and change in net position (Table 2) of the School District.
Table 1
Net PositionJune 30,
Governmental Activities Business-Type Activities Total
2015 2014 2015 2014 2015 2014
Assets
Current and Other Assets 3,494,813 3,375,757 58,879 47,235 3,553,692 3,422,992
Capital Assets:
Land and Construction in Progress 1,320,213 1,320,213 1,320,213 1,320,213
Depreciable Buildings, Improvements
and Equipment (net) 3,283,526 2,693,207 13,382 17,514 3,296,908 2,710,721
Total Assets 8,098,552 7,389,177 72,261 64,749 8,170,813 7,453,926
Deferred Outflows:
Unamortized Bond Issuance Costs 7,001 9,334 7,001 9,334
Deferred Outflows of Resources
Related to PERS 695,749 695,749
Total Deferred Outflows 702,750 9,334 702,750 9,334
Liabilities
Current Liabilities 1,334,782 959,977 1,334,782 959,977
Noncurrent Liabilities 4,749,738 829,495 4,749,738 829,495
Total Liabilities 6,084,520 1,789,472 6,084,520 1,789,472
Deferred Inflows:
Deferred Inflows of Resources
Related to PERS 233,702 233,702
Total Deferred Inflows 233,702 233,702
Net Position
Net Investment in Capital
Assets 4,278,874 3,727,754 13,382 17,514 4,292,256 3,745,268
Restricted 2,430,542 2,567,177 2,430,542 2,567,177
Unrestricted (4,226,336) (685,892) 58,879 47,235 (4,167,457) (638,657)
Total Net Position 2,483,080 5,609,039 72,261 64,749 2,555,341 5,673,788
-15-
FAIRVIEW BOARD OF EDUCATIONFAIRVIEW, NJ
MANAGEMENT’S DISCUSSION AND ANALYSISFOR THE FISCAL YEAR ENDED JUNE 30, 2015
UNAUDITED (CONTINUED)
DISTRICT-WIDE FINANCIAL ANALYSIS, (continued)
Table 2 below shows the changes in net position for fiscal year 2015.
Table 2Changes in Net Position
Year Ended June 30,
Governmental Activities Business-Type Activities Total
2015 2014 2015 2014 2015 2014
Revenues
Program Revenues:
Charges for Services and
Sales 10,005 31,041 10,005 31,041
Operating Grants and
Contributions 1,571,386 1,733,921 317,090 362,183 1,888,476 2,096,104
General Revenues:
Taxes:
Property Taxes 13,533,081 13,457,389 13,533,081 13,457,389
Federal and State Aid not
Restricted 10,658,316 8,861,509 10,658,316 8,861,509
Federal and State Aid -
Debt Service 46,342 46,342
Federal and State Aid -
Capital Outlay 8,954 5,480 8,954 5,480
State Aid - Capital Outlay
Facilities Grant 213,958 213,958
Tuition Received 10,530 13,050 10,530 13,050
Miscellaneous Income 354,499 86,618 2,059 354,499 88,677
Investment Income 2,955 3,457 43 49 2,998 3,506
Transfers (10,044) (4,799) 10,044 4,799
Total Revenues and Transfers 26,343,635 24,202,967 337,182 400,131 26,680,817 24,603,098
-16-
FAIRVIEW BOARD OF EDUCATIONFAIRVIEW, NJ
MANAGEMENT’S DISCUSSION AND ANALYSISFOR THE FISCAL YEAR ENDED JUNE 30, 2015
UNAUDITED (CONTINUED)
DISTRICT-WIDE FINANCIAL ANALYSIS, (continued)
Governmental Activities Business-Type Activities Total
2015 2014 2015 2014 2015 2014
Functions/Program Expenses
Instruction:
Regular 5,851,323 4,624,714 5,851,323 4,624,714
Special Education 3,177,747 2,975,019 3,177,747 2,975,019
Other Special Instruction 903,934 1,000,664 903,934 1,000,664
Other Instruction 55,423 40,468 55,423 40,468
Support Services:
Tuition 7,632,695 7,212,821 7,632,695 7,212,821
Student & Instruction
Related Services 2,220,215 2,031,343 2,220,215 2,031,343
School Administrative
Services 738,929 650,907 738,929 650,907
General Administrative
Services 892,615 711,639 892,615 711,639
Central Administration and
Admin. Info. Tech. 740,156 608,662 740,156 608,662
Plant Operations and
Maintenance 1,557,489 1,492,204 1,557,489 1,492,204
Pupil Transportation 394,459 365,833 394,459 365,833
Unallocated Benefits 1,488,287 1,267,932 1,488,287 1,267,932
Special Schools 21,000 21,000 21,000 21,000
Charter Schools 0
Capital Outlay -
Nondepreciable 5,480 0 5,480
Interest on Long-Term Debt 15,561 21,128 15,561 21,128
Unallocated Depreciation 245,381 322,405 245,381 322,405
Capital Lease Obligations
and Amortization 2,333 2,333 2,333 2,333
Food Service 329,670 389,471 329,670 389,471
Total Expenses 25,937,547 23,354,552 329,670 389,471 26,267,217 23,744,023
Increase or (Decrease) in
Net Position 406,088 848,415 7,512 10,660 413,600 859,075
-17-
FAIRVIEW BOARD OF EDUCATIONFAIRVIEW, NJ
MANAGEMENT’S DISCUSSION AND ANALYSISFOR THE FISCAL YEAR ENDED JUNE 30, 2015
UNAUDITED (CONTINUED)
DISTRICT-WIDE FINANCIAL ANALYSIS, (continued)
Governmental and Business- Activities
As reported in the Statement of Activities the cost of all of our governmental and business-type activities this yearwas $26,267,217. However, the amount that our taxpayers ultimately financed for these activities through SchoolDistrict taxes was only $13,533,081 because some of the cost was paid by those who benefitted from the programs$10,005, by other governments and organizations who subsidized certain programs with grants and contributions$1,888,476, unrestricted federal and state aid $10,658,316, federal and state aid capital outlay $8,954, state aidcapital outlay facilities grant aid $213,958, and by miscellaneous sources $368,027.
Revenues for the District’s business-type activities (food service and school age child care programs) werecomprised of charges for services and federal and state subsidy reimbursements. Significant financial results includethe following:
T Food service revenues exceeded expenses by $7,512.
T Charges for services provided totaled $10,005. This represents amounts paid by consumers for daily foodservices.
T Federal and state reimbursement for meals served, including payments for free and reduced priced lunches,and donated commodities was $317,090.
The following schedules present a summary of governmental fund revenues and expenditures for the fiscal yearended June 30, 2015, and the amount and percentage of increases/(decreases) relative to the prior year.
Revenue AmountPercent of
Total
Increase/(Decrease)from 2014
Percent ofIncrease/
(Decrease)
Local Source $13,906,065 55.8% $345,551 2.55%
State Source 9,753,053 39.1% 663,932 7.30%Federal Source 1,272,936 5.1% (285,195) (18.30)%
Total $24,932,054 100.0% $724,288 2.99%
Expenditures AmountPercent of
Total
Increase/(Decrease)from 2014
Percent ofIncrease/
(Decrease)
Current Expenditures:Instruction $7,578,324 30.2% $231,599 3.15%Undistributed 16,639,008 66.2% 890,082 5.65%
Debt Service 84,950 0.3% (234,339) (73.39)%Capital Outlay 824,665 3.3% 819,185 14948.63%
Total $25,126,947 100.0% $1,706,527 7.29%
-18-
FAIRVIEW BOARD OF EDUCATIONFAIRVIEW, NJ
MANAGEMENT’S DISCUSSION AND ANALYSISFOR THE FISCAL YEAR ENDED JUNE 30, 2015
UNAUDITED (CONTINUED)
MAJOR GOVERNMENTAL FUNDS BUDGETING AND OPERATING HIGHLIGHTS
The School District’s budgets are prepared according to New Jersey law, and are based on accounting for certaintransactions on a basis of cash receipts, disbursements and encumbrances. The most significant budgeted fundsare the general fund and the special revenue fund.
During the fiscal year ended June 30, 2015, the School District amended the budgets of these major governmentalfunds several times. Revisions in the budget were made to recognize revenues that were not anticipated and toprevent over-expenditures in specific line item accounts. Several of these revisions bear notation:
C TPAF, which is the state’s contribution to the pension fund, is neither a revenue item nor an expenditureitem to the district but is required to be reflected in the financial statements.
C The general fund was increased by $1,081,217 for increases in transfer to capital projects fund.
C The special revenue fund was increased by $70,266 for increases in federal and state grant awards.
General Fund
The general fund actual revenue was $23,056,104. That amount is $1,829,410 above the final amended budget of$21,226,694. The variance between the actual revenues and final budget was the result of non-budgeted on-behalfpayments of $1,424,445 for TPAF social security reimbursements and on-behalf pension payments and a $404,965excess in miscellaneous anticipated revenues, other state aids and other federal aids.
The actual expenditures of the general fund were $23,890,690 including transfers which is $513,263 less than thefinal amended budget of $23,377,427. The variance between the actual expenditures and final budget was due tonon-budgeted on-behalf TPAF social security and pension payments of $1,424,445 and $911,182 of unexpendedbudgeted funds.
Special Revenue Fund
The special revenue fund actual revenue was $1,558,018. That amount is above the original budget estimate of$1,686,718 and below the final amended budget of $1,756,984. The $70,266 variance between the original and finalbudget was due to additional federal and state grant monies awarded to the District after the original budget wasapproved. The $198,966 variance between the final amended budget and the June 30, 2015 actual results was dueto the deferral of Federal and State grants received in the current fiscal year to be spent in the next fiscal year.
The actual expenditures of the special education fund were $1,558,018, which is above the original budget of$1,686,718 and below the final amended budget of $1,756,984. The $70,266 variance between the original and finalbudget was due to additional expenditures related to the additional grants awarded to the District after the originalbudget was approved. The $198,966 variance between the final amended budget and the June 30, 2015 actual resultswas due to the anticipation of fully expending
-19-
FAIRVIEW BOARD OF EDUCATIONFAIRVIEW, NJ
MANAGEMENT’S DISCUSSION AND ANALYSISFOR THE FISCAL YEAR ENDED JUNE 30, 2015
UNAUDITED (CONTINUED)
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
At the end of fiscal year 2015 the School District had $13,249,890 invested in sites, buildings, equipment andconstruction in progress. Of this amount, $8,632,769 in depreciation has been taken over the years. We currentlyhave a net book value of $4,617,121. Total depreciable additions for the year were $835,700, which consisted ofvarious equipment purchases and site and building improvements. Table 3 shows fiscal year 2015 balancescompared to 2014.
Table 3Capital Assets at June 30,
(Net of Depreciation)
Governmental Activities Business-Type Activities Total 2015 2014 2015 2014 2015 2014
Land 1,320,213 1,320,213 1,320,213 1,320,213Site Improvements 119,536 130,673 119,536 130,673Buildings and Improvements 2,647,007 1,926,332 2,647,007 1,926,332Machinery and Equipment 516,983 636,202 13,382 17,514 530,365 653,716
4,603,739 4,013,420 13,382 17,514 4,617,121 4,030,934
-20-
FAIRVIEW BOARD OF EDUCATIONFAIRVIEW, NJ
MANAGEMENT’S DISCUSSION AND ANALYSISFOR THE FISCAL YEAR ENDED JUNE 30, 2015
UNAUDITED (CONTINUED)
CAPITAL ASSETS AND DEBT ADMINISTRATION, (continued)
Debt Administration
At June 30, 2015, the District had $4,749,738 of long term debt. Of this amount, $496,340 is for compensatedabsences, $225,000 is for the pension refunding bonds, $106,866 is for obligations under capital lease, and$3,921,532 is for net pension liability.
Table 4Outstanding Serial Bonds at June 30,
2015 2014
2003 Pension Refunding Bonds $225,000 $295,000
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS
The economy in the State of New Jersey is slowly improving. The current State of New Jersey revenue estimateshave declined to the point that the legislature and governor have approved a State Aid funding bill for the 2015-2016school year that is slightly above the funding level of the 2014-2015 school year.
These factors were considered in preparing the Fairview Board of Education’s budgets for the 2015-2016 fiscal year.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the Fairview Board of Education’s finances forall those with an interest in the government’s finances. Questions concerning any of the information provided inthis report or requests for additional information should be addressed to:
School Business AdministratorFairview Board of EducationHamilton and Day AvenuesFairview, NJ 07022
-21-
BASIC FINANCIAL STATEMENTS
DISTRICT-WIDE FINANCIAL STATEMENTS
Exhibit A-1
FAIRVIEW BOARD OF EDUCATIONStatement of Net Position
June 30, 2015
Governmental Business-typeActivities Activities Total
ASSETSCash and cash equivalents 935,479 28,413 963,892 Receivables, net 1,917,387 30,113 1,947,500 Internal Balances (353) 353 - Restricted assets: Reserve accounts - cash 642,300 642,300 Capital assets: Land and Construction in Progess 1,320,213 1,320,213 Depreciable Buildings, Improvements and Equipment (net) 3,283,526 13,382 3,296,908 Total Assets 8,098,552 72,261 8,170,813
Deferred Outflow of Resources: Unamortized bond issuance costs 7,001 7,001 Deferred outflows of resources related to PERS 695,749 695,749
Total Deffered Outflows 702,750 702,750
LIABILITIESAccounts payable and accrued liabilities 1,314,937 1,314,937 Payable to federal government 1,643 1,643 Payable to state government 11,947 11,947 Deferred revenue 6,255 6,255 Noncurrent liabilities: Due within one year 108,833 108,833 Due beyond one year 4,640,905 4,640,905 Total liabilities 6,084,520 - 6,084,520
Deferred Inflows of Resources: Deferred inflows of resources related to PERS 233,702 233,702
Total Deffered Inflows 233,702 233,702
NET POSITIONNet Investment in Capital Assets 4,278,874 13,382 4,292,256 Restricted for: Debt service 1 1 Capital projects 799,605 799,605 Other purposes 1,630,936 1,630,936 Unrestricted (Deficit) (4,226,336) 58,879 (4,167,457) Total net position 2,483,080 72,261 2,555,341
The accompanying Notes to Basic Financial Statements are an integral part of this statement.
-22-
Exh
ibit
A-2
FA
IRV
IEW
BO
AR
D O
F E
DU
CA
TIO
NS
tate
men
t of
Act
ivit
ies
Fis
cal Y
ear
En
ded
Ju
ne
30, 2
015
Net
(E
xpen
se)
Rev
enu
e an
dP
rogr
am R
even
ues
Ch
ange
s in
Net
Pos
itio
nIn
dir
ect
Op
erat
ing
Exp
ense
sC
har
ges
for
Gra
nts
an
dG
over
nm
enta
lB
usi
nes
s-ty
pe
Fu
nct
ion
s/P
rogr
ams
Exp
ense
sA
lloca
tion
Ser
vice
sC
ontr
ibu
tion
sA
ctiv
itie
sA
ctiv
itie
sT
otal
G
over
nmen
tal a
ctiv
ities
:
In
stru
ctio
n:
Reg
ular
4,28
1,88
0
1,
569,
443
(5
,851
,323
)
(5
,851
,323
)
Sp
ecia
l edu
catio
n2,
596,
871
580,
876
1,25
1,07
9
(1,9
26,6
68)
(1,9
26,6
68)
Oth
er s
peci
al in
stru
ctio
n63
0,00
1
273,
933
(903
,934
)
(903
,934
)
Oth
er in
stru
ctio
n41
,045
14
,378
(55,
423)
(55,
423)
Su
ppor
t ser
vice
s:
Tui
tion
7,63
2,69
5
(7
,632
,695
)
(7
,632
,695
)
St
uden
t & in
stru
ctio
n re
late
d se
rvic
es1,
749,
995
470,
220
320,
307
(1,8
99,9
08)
(1,8
99,9
08)
Scho
ol a
dmin
istr
ativ
e se
rvic
es51
4,54
0
224,
389
(738
,929
)
(738
,929
)
Gen
eral
adm
inis
trat
ive
serv
ices
734,
970
15
7,64
5
(8
92,6
15)
(8
92,6
15)
C
entr
al s
ervi
ces
and
adm
inis
trat
ive
in
form
atio
n te
chno
logy
530,
862
20
9,29
4
(7
40,1
56)
(7
40,1
56)
P
lant
ope
ratio
ns a
nd m
aint
enan
ce1,
297,
236
260,
253
(1,5
57,4
89)
(1,5
57,4
89)
Pup
il tr
ansp
orta
tion
303,
807
90
,652
(394
,459
)
(394
,459
)
Una
lloca
ted
bene
fits
1,48
8,28
7
(1
,488
,287
)
(1
,488
,287
)
Spec
ial s
choo
ls21
,000
(2
1,00
0)
(2
1,00
0)
Inte
rest
on
long
-ter
m d
ebt
15,5
61
(15,
561)
(15,
561)
U
nallo
cate
d de
prec
iatio
n24
5,38
1
(245
,381
)
(245
,381
)
A
mor
tizat
ion
2,33
3
(2
,333
)
(2,3
33)
T
otal
gov
ernm
enta
l act
iviti
es22
,086
,464
3,
851,
083
-
1,57
1,38
6
(24,
366,
161)
-
(24,
366,
161)
B
usin
ess-
type
act
iviti
es:
Food
Ser
vice
329,
670
10
,005
31
7,09
0
(2
,575
)
(2
,575
)
Tot
al b
usin
ess-
type
act
iviti
es32
9,67
0
10,0
05
317,
090
(2,5
75)
(2,5
75)
Tot
al p
rim
ary
gove
rnm
ent
22,4
16,1
34
10,0
05
1,88
8,47
6
(24,
366,
161)
(2,5
75)
(24,
368,
736)
Gen
eral
rev
enue
s:T
axes
:
Lev
ied
for
gene
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urpo
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13,4
48,1
3313
,448
,133
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84,9
48
84
,948
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,658
,316
10,6
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16
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8,95
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213,
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354,
499
354,
499
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,530
10,5
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-
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,772
,249
10,0
87
24
,782
,336
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6,08
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7,
512
413,
600
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—be
ginn
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076,
992
64
,749
2,14
1,74
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72
,261
2,55
5,34
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-23-
FUND FINANCIAL STATEMENTS
Exhibit B-1
FAIRVIEW BOARD OF EDUCATIONBalance Sheet
Governmental FundsJune 30, 2015
Special Capital Debt TotalGeneral Revenue Projects Service Governmental
Fund Fund Fund Fund Funds
ASSETS Cash and cash equivalents
Checking 392,131 543,347 1 935,479 Accounts Receivable -
Interfunds 84,057 84,057 Intergovernmental - Federal 22,387 145,945 168,332 Intergovernmental - State 407,340 213,958 621,298 Other receivables 1,127,757 1,127,757
Restricted cash and cash equivalentsCapital reserve 42,300 42,300 Tuition reserve 600,000 600,000
Total assets 2,675,972 145,945 757,305 1 3,579,223
LIABILITIES AND FUND BALANCES Liabilities: Accounts payable 1,095,604 42,043 1,137,647 Intergovernmental accounts payable - State 11,947 11,947 Intergovernmental accounts payable - Federal 1,643 1,643 Interfund payables 353 84,057 84,410 Deferred revenue 6,255 6,255
Total liabilities 1,095,957 145,945 - - 1,241,902
Fund Balances: Restricted for: Excess Surplus - current year 145,633 145,633 Excess Surplus - prior year - designated for
subsequent year's expenditures 184,306 184,306 Capital reserve account 42,300 42,300 Tuition reserve 600,000 600,000 Assigned to: Year-end Encumbrances 191,890 499,237 691,127 Designated by the BOE for
subsequent year's expenditures 509,107 509,107 Capital projects fund 258,068 258,068 Debt service fund 1 1 Unassigned: General fund (93,221) (93,221)
Total Fund balances 1,580,015 - 757,305 1 2,337,321
Total liabilities and fund balances 2,675,972 145,945 757,305 1
Amounts reported for governmental activities in the statement of net position (A-1) are different because:
Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. The cost of the assets is $13,186,820 and the accumulated depreciation is $8,583,081 4,603,739
Accrued liability for interest on long-term debt is not due and payable in the current period and is not reported as a liability in the funds (2,731)
Accounts payable for subsequent Pension payment is not a payable in the funds (174,559)
Bond issuance costs are reported as expenditures in the Governmental Funds in the year of the expenditure. The costs are $30,000 and accumulated amortization is $22,999 7,001
Deferred outflows and inflows of resources are applicable to future periods and therefore are not reported in the funds. Deferred outflows of resources related to PERS Pension Liability 695,749 Deferred inflows of resources related to PERS Pension Liability (233,702)
Long-term liabilities are not due and payable in the current period and therefore are not reported as liabilties in the funds (see Note 6) (4,749,738)
Net position of governmental activities 2,483,080
The accompanying Notes to Basic Financial Statements are an integral part of this statement.
-24-
Exhibit B-2
FAIRVIEW BOARD OF EDUCATIONStatement of Revenues, Expenditures, and Changes in Fund Balances
Governmental FundsFiscal Year Ended June 30, 2015
Special Capital Debt TotalGeneral Revenue Projects Service Governmental
Fund Fund Fund Fund Funds
REVENUESLocal sources: Municipal tax levy 13,448,133 84,948 13,533,081 Tuition from Summer School 10,530 10,530 Miscellaneous 357,454 5,000 362,454
Total - Local Sources 13,816,117 5,000 - 84,948 13,906,065
State sources 9,196,028 343,067 213,958 9,753,053 Federal sources 40,663 1,232,273 1,272,936
Total revenues 23,052,808 1,580,340 213,958 84,948 24,932,054
EXPENDITURESCurrent: Regular instruction 4,310,407 4,310,407 Special education instruction 1,345,792 1,251,079 2,596,871 Other special instruction 630,001 630,001 School sponsored/other instructional 41,045 41,045 Support services and undistributed costs: Tuition 7,632,695 7,632,695 Attendance and social work services 192,213 192,213 Health services 231,111 231,111 Student & instruction related services 1,006,364 320,307 1,326,671 School administrative services 514,540 514,540 General administrative services 734,970 734,970 Central services & administrative
information technology 530,862 530,862 Plant operations and maintenance 1,297,236 1,297,236 Pupil transportation 303,807 303,807 Unallocated benefits 2,429,458 2,429,458 On-behalf contributions 1,424,445 1,424,445 Special Schools:
Summer School Instruction 21,000 21,000 Debt service:
Principal 70,000 70,000 Interest and other charges 14,950 14,950
Capital outlay 124,358 8,954 691,353 824,665
Total expenditures 22,770,304 1,580,340 691,353 84,950 25,126,947
Excess (Deficiency) of revenues 282,504 - (477,395) (2) (194,893)
OTHER FINANCING SOURCES (USES)Transfers in 1,234,700 1,234,700 Transfers out (1,244,744) (1,244,744) Capital Leases (non-budgeted) 124,358 124,358
Total other financing sources and uses (1,120,386) - 1,234,700 - 114,314
Net change in fund balances (837,882) - 757,305 (2) (80,579)
Fund balance—July 1 2,417,897 3 2,417,900
Fund balance—June 30 1,580,015 - 757,305 1 2,337,321
The accompanying Notes to Basic Financial Statements are an integral part of this statement.
-25-
Exhibit B-3
FAIRVIEW BOARD OF EDUCATIONReconciliation of the Statement of Revenues, Expenditures,
and Changes in Fund Balances of Governmental Fundsto the Statement of Activities
Fiscal Year Ended June 30, 2015
Total net change in fund balances - governmental funds (from B-2) (80,579)
Amounts reported for governmental activities in the statementof activities (A-2) are different because:
Capital outlays are reported in governmental funds as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the period.
Depreciation expense (245,381)Depreciable Capital outlays 835,700
590,319
Repayment of long-term debt is reported as an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net assets and is not reported in the statement of activities. In the current year , these amounts consist of: General Bond Obligations - Principal 70,000 Capital Lease Obligations - Principal 17,492
87,492
Proceeds from debt issues are a financing source in the governmental funds. They are not revenue in the statement of activities; issuing debt increases long-term liabilities in the statement of net assets. Capital lease proceeds (124,358)
In the statement of activities, interest on long-term debt in the statement of activities is accrued, regardless of when due. In the governmental funds, interest is reported when due. The accrued interest is an addition in the reconciliation. (+) General Bond Obligations - Prior Year 2,120 General Bond Obligations (2,731)
(611)
In the statement of activities, certain operating expenses, e.g., compensated absences (vacations) are measured by the amounts earned during the year. In the governmental funds, however, expenditures for these items are reported in the amount of financial resources used (paid). When the earned amount exceeds the paid amount, the difference is reduction in the reconciliation (-); when the paid amount exceeds the earned amount the difference is an addition to the reconciliation (+).
Decrease in compensated absences payable 38,155
District pension contributions are reported as expenditures in the governmental funds when made. However, per GASB No. 68 they are reported as deferred outflows of resources in the Statement of Net Position because the reported net pension liability is measured a year before the District's report date. Pension expense, which is the change in the net pension liability adjusted for changed in deferred outflows and inflows of resources related to pensions, is reported in the Statement of Activities.
District Pension Contributions 172,670Less: Pension Expense (274,667)
Increase in Pension Expense (101,997)
Per GASB No. 68, Non-employer contributing entities are required to record any increases in revenue and expense for On-behalf TPAF pension payments paid by the State of New Jersey on the Statement of Activities that are in excess of those amounts reported in the fund financial statements.
Increase in On-behalf State Aid TPAF Pension 1,421,625Increase in On-behalf TPAF Pension Expense (1,421,625)
The governmental funds report the effect of issuance costs when debt is first issued. Whereas these amounts are deferred and amortized in the Statement of Activities (-) (2,333)
Change in net position of governmental activities 406,088
The accompanying Notes to Basic Financial Statements are an integral part of this statement.
-26-
Exhibit B-4
Business-typeActivities -
Enterprise Fund
Food ServiceProgram
ASSETS
Current assets:Cash and cash equivalents 28,413 Interfund receivable 353 Accounts receivable:
State 652 Federal 29,461
Total current assets 58,879
Noncurrent assets:
Capital assets:
Equipment 63,070 Less accumulated depreciation (49,688) Total capital assets (net of accumulated depreciation) 13,382 Total assets 72,261
NET POSITION
Net Investment in Capital Assets 13,382 Unrestricted 58,879 Total net position 72,261
FAIRVIEW BOARD OF EDUCATIONStatement of Net Position
Proprietary FundsJune 30, 2015
-27-
Exhibit B-5
Business-typeActivities -
Enterprise Fund
Food ServiceProgram
Operating revenues:Charges for services: Daily sales 10,005 Total operating revenues 10,005
Operating expenses:Cost of sales 325,538 Depreciation expense 4,132 Total Operating Expenses 329,670 Operating income (loss) (319,665)
Nonoperating revenues (expenses):State sources: School lunch program 5,365 Federal sources: National school lunch program 278,178 Breakfast program 33,547 Interest Income 43 Total nonoperating revenues (expenses) 317,133 Income (loss) before contributions & transfers (2,532)
Other financing sources/(uses)Transfer In 10,044 Change in net position 7,512
Total net position—beginning 64,749 Total net position—ending 72,261
The accompanying Notes to Basic Financial Statements are an integral part of this statement.
Fiscal Year Ended June 30, 2015
FAIRVIEW BOARD OF EDUCATIONStatement of Revenues, Expenses, and Changes in Fund Net Position
Proprietary Funds
-28-
Exhibit B-6
Statement of Cash FlowsProprietary Funds
Business-typeActivities -
Enterprise Fund
Food ServiceProgram
CASH FLOWS FROM OPERATING ACTIVITIESReceipts from customers 10,005 Payments to suppliers (325,538) Net cash provided by (used for) operating activities (315,533)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIESState Sources 5,380 Federal Sources 320,676 Transfer In 10,044 Net cash provided by (used for) non-capital financing activities 336,100
CASH FLOWS FROM INVESTING ACTIVITIESInterest and dividends 43 Net cash provided by (used for) investing activities 43 Net increase (decrease) in cash and cash equivalents 20,610
Balances—beginning of year 7,803 Balances—end of year 28,413
Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) (319,665) Adjustments to reconcile operating income (loss) to net cash provided by Depreciation and net amortization 4,132 Total adjustments 4,132 Net cash provided by (used for) operating activities (315,533)
The accompanying Notes to Basic Financial Statements are an integral part of this statement.
Fiscal Year Ended June 30, 2015
FAIRVIEW BOARD OF EDUCATION
-29-
Exhibit B-7
FAIRVIEW BOARD OF EDUCATIONStatement of Fiduciary Net Position
Fiduciary FundsJune 30, 2015
Agency Fund
ASSETSCash and cash equivalents 275,122 Total assets 275,122
LIABILITIES Payable to student groups 17,725 Payroll deductions and withholdings 255,462 Region VI Fund 1,935 Total liabilities 275,122
The accompanying Notes to Basic Financial Statements are an integral part of this statement.
-30-
NOTES TO THE FINANCIAL STATEMENTS
Fairview Board of EducationNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2015
NOTE 1. DESCRIPTION OF THE SCHOOL DISTRICT AND REPORTING ENTITY
The Fairview Board of Education (the “Board” or the “District”) is an instrumentality of the State of NewJersey, established to function as an educational institution. The Fairview Board of Education is a Type IIdistrict located in the County of Bergen, State of New Jersey. As a Type II district, the School Districtfunctions independently through a Board of Education. The board is comprised of nine members electedto three-year terms. The purpose of the District is to educate students in grades K-8. A superintendent isappointed by the Board and is responsible for the administrative control of the District. Under existingstatutes, the Board’s duties and powers include, but are not limited to, the development and adoption of aschool program; the establishment, organization and operation of schools; and the acquisition, maintenanceand disposition of school property.
The Board also has broad financial responsibilities, including the approval of the annual budget and theestablishment of a system of accounting and budgetary controls.
The primary criterion for including activities within the District's reporting entity, as set forth in Section2100 of the GASB Codification of Governmental Accounting and Financial Reporting Standards, is whether:
C the organization is legally separate (can sue or be sued in their own name)C the Board holds the corporate powers of the organizationC the Board appoints a voting majority of the organization’s boardC the Board is able to impose its will on the organizationC the organization has the potential to impose a financial benefit/burden on the BoardC there is a fiscal dependency by the organization on the Board
Based on the aforementioned criteria, the Board has no component units. Furthermore, the Board is notincludable in any other reporting entity on the basis of such criteria.
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the Fairview Board of Education have been prepared in conformity withaccounting principles generally accepted in the United States of America (GAAP) as applied togovernmental units. The Governmental Accounting Standards Board (GASB) is the acceptedstandard-setting body for establishing governmental accounting and financial reporting principles. The moresignificant of the board’s accounting policies are described below.
-31-
Fairview Board of EducationNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2015
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
A. Basis of Presentation:
The Board’s basic financial statements consist of District-wide statements, including a statement of netposition and a statement of activities, and fund financial statements which provide a more detailed level offinancial information.
District-wide Financial Statements:
The statement of net position and the statement of activities display information about the Board as a whole. These statements include the financial activities of the overall District, except for the fiduciary funds. Thestatements distinguish between those activities of the Board that are governmental and those that areconsidered business-type activities.
The statement of net position presents the financial condition of the governmental and business-typeactivities of the Board at year-end. The statement of activities presents a comparison between directexpenses and program revenues for each program or function of the governmental activities and for thebusiness-type activities of the Board. Direct expenses are those that are specifically associated with aservice, program or department and therefore clearly identifiable to a particular function. Program revenuesinclude charges paid by the recipient of the goods or services offered by the program, grants andcontributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues which are not classified as program revenues are presented as general revenues of the Board, withcertain limited exceptions. The comparison of direct expenses with program revenues identifies the extentto which each business segment or governmental function is self-financing or draws from the generalrevenues of the Board.
Fund Financial Statements:
During the fiscal year, the School District segregates transactions related to certain School District functionsor activities in separate funds in order to aid financial management and to demonstrate legal compliance. The fund financial statements provide information about the District’s funds, including its fiduciary funds. Separate statements for each fund category - government, proprietary, and fiduciary - are presented. TheNew Jersey Department of Education (NJDOE) has elected to require New Jersey districts to treat eachgovernmental fund as a major fund in accordance with the option noted in GASB No. 34, paragraph 76. TheNJDOE believes that the presentation of all funds as major is important for public interest and to promoteconsistency among district financial reporting models. The various funds of the Board are grouped into thecategories governmental, proprietary and fiduciary.
-32-
Fairview Board of EducationNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2015
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
GOVERNMENTAL FUNDS
Governmental funds are those through which most governmental functions of the Board are financed. Governmental fund reporting focuses on the sources, uses and balances of current financial resources. Expendable assets are assigned to the various governmental funds according to the purposes for whichthey may or must be used. Current liabilities are assigned to the fund from which they will be paid. The difference between governmental fund assets and liabilities is reported as fund balance. Thefollowing are the Board’s governmental funds:
General Fund - The General Fund is the general operating fund of the Board. It is used to account forall financial resources except those required to be accounted for in another fund. Included are certainexpenditures for vehicles and movable instructional or noninstructional equipment which are classifiedin the Capital Outlay subfund.
As required by the New Jersey State Department of Education, the Board includes budgeted CapitalOutlay in this fund. Accounting principles generally accepted in the United States of America as theypertain to governmental entities state that General Fund resources may be used to directly financecapital outlays for long-lived improvements as long as the resources in such cases are derivedexclusively from unrestricted revenues.
Resources for budgeted capital outlay purposes are normally derived from State of New Jersey Aid,District taxes and appropriated fund balance. Expenditures are those that result in the acquisition ofor additions to fixed assets for land, existing buildings, improvements of grounds, construction ofbuildings, additions to or remodeling of buildings and the purchase of built-in equipment. Theseresources can be transferred from and to Current Expense by board resolution.
Special Revenue Fund - The Special Revenue Fund is used to account for the proceeds of specificrevenue from State and Federal Government, (other than major capital projects, Debt Service or theEnterprise Funds) and local appropriations that are legally restricted to expenditures for specifiedpurposes.
Capital Projects Fund - The Capital Projects Fund is used to account for all financial resources to beused for the acquisition or construction of major capital facilities (other than those financed byProprietary Funds). The financial resources are derived from sale of bonds, lease purchases and otherrevenues.
Debt Service Fund - The debt service fund is used to account for the accumulation of resources forand the payment of principal and interest on bonds issued to finance major property acquisition,construction and improvement programs.
-33-
Fairview Board of EducationNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2015
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
PROPRIETARY FUNDS
The focus of Proprietary Fund measurement is upon determination of net income, changes in netposition, financial position and cash flows. The accounting principles generally accepted in the UnitedStates of America applicable are those similar to businesses in the private sector. Proprietary funds areclassified as enterprise or internal service. The following is a description of the Proprietary Funds ofthe Board:
Enterprise Funds - The Enterprise Funds are utilized to account for operations that are financed andoperated in a manner similar to private business enterprises -- where the intent of the Board is that thecosts (i.e. expenses including depreciation and indirect costs) of providing goods or services to thestudents on a continuing basis be financed or recovered primarily through user charges; or, where theBoard has decided that periodic determination of revenues earned, expenses incurred, and/or netincome is appropriate for capital maintenance, public policy, management control, accountability orother purposes.
The Board's Enterprise Fund is comprised of the Food Service Fund.
FIDUCIARY FUNDS
Fiduciary Fund - Fiduciary Fund reporting focuses on net position and changes in net position. TheFiduciary Funds are used to account for assets held by the Board on behalf of individuals, privateorganizations, other governments and/or other funds. Fiduciary Funds include Region VI StudentActivities Fund, Payroll and Payroll Agency Fund.
B. Measurement Focus:
District-wide Financial Statements
The District-wide statements (i.e., the statement of net position and the statement of activities) are preparedusing the economic resources measurements focus and the accrual basis of accounting. All assets andliabilities associated with the operation of the Board are included on the statement of net position, exceptfor fiduciary funds.
-34-
Fairview Board of EducationNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2015
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
B. Measurement Focus: (continued)
Fund Financial Statements
All governmental funds are accounted for using a flow of current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balancesheet. The statement of revenues, expenditures and changes in fund balances reports on the sources (i.e.,revenues and other financing sources) and uses (i.e., expenditures and other financing uses) of currentfinancial resources. This approach differs from the manner in which the governmental activities of theDistrict-wide financial statements are prepared. Governmental fund financial statements therefore includea reconciliation with brief explanations to better identify the relationship between the government-widestatements and the statements for governmental funds.
Like the District-wide statements, all proprietary fund types are accounted for on a flow of economicresources measurement focus. All assets and all liabilities associated with the operation of these funds areincluded on the statement of net position. The statement of changes in fund net position presents increases(i.e., revenues) and decreases (i.e., expenses) in net total assets. The statement of cash flows providesinformation about how the Board finances and meets the cash flow needs of its proprietary activities.
C. Basis of Accounting:
Basis of accounting determines when transactions are recorded in the financial records and reported on thefinancial statements. The District-wide financial statements and the financial statements of the proprietaryand fiduciary funds are prepared using the accrual basis of accounting. Governmental funds use themodified accrual basis of accounting. Differences in the accrual and the modified accrual basis ofaccounting arise in the recognition of revenue, the recording of unearned revenue, and in the presentationof expenses versus expenditures.
Revenues - Exchange and Non-exchange Transactions
Revenue resulting from exchange transactions, in which each party gives and receives essentially equalvalue, is recorded on the accrual basis when the exchange takes place. On a modified accrual basis, revenueis recorded in the fiscal year in which the resources are measurable and become available. Available meansthat the resources will be collected within the current fiscal year or are expected to be collected soon enoughthereafter to be used to pay liabilities of the current fiscal year.
-35-
Fairview Board of EducationNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2015
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
C. Basis of Accounting: (continued)
Revenues - Exchange and Non-exchange Transactions, (continued)
Nonexchange transactions, in which the Board receives value without directly giving equal value in return,include property taxes, grants, entitlements and donations. On an accrual basis, revenue from property taxesis recognized in the fiscal year for which the taxes are levied. Revenue from grants, entitlements anddonations is recognized in the fiscal year in which all eligibility requirements have been satisfied. Eligibilityrequirements include timing requirements, which specify the year when the resources are required to be usedor the year when use is first permitted, matching requirements, in which the Board must provide localresources to be used for a specified purpose, and expenditure requirements, in which the resources areprovided to the Board on a reimbursement basis. On a modified accrual basis, revenue from nonexchangetransactions must also be available before it can be recognized. Under GAAP, in accordance with GASBNo. 33, Accounting and Financial Reporting for Nonexchange Transactions, the last state aid payment is notconsidered revenue to the school district if the state has not recorded the corresponding expenditure, eventhough state law dictates recording the revenue.
Under the modified accrual basis, the following revenue sources are considered to be both measurable andavailable at year-end: ad valorem property taxes, tuition, unrestricted grants and interest.
Expenses/Expenditures
On the accrual basis of accounting, expenses are recognized at the time they are incurred. The fair value ofdonated commodities used during the year is reported in the operating statement as an expense with a likeamount reported as donated commodities revenue.
The measurement of focus of governmental fund accounting is on decreases in net financial resources(expenditures) rather than expenses. Expenditures are generally recognized in the accounting period inwhich the related fund liability is incurred, if measurable. Allocations of cost, such as depreciation andamortization, are not recognized in the governmental funds.
D. Budgets/Budgetary Control:
Annual appropriated budgets are adopted in the spring of the preceding year for the general, and specialrevenue funds. The budgets are submitted to the county superintendents office for approval. Budgets areprepared using the modified accrual basis of accounting, except for the special revenue fund as describedlater. The legal level of budgetary control is established at line item accounts within each fund. Line itemaccounts are defined as the lowest (most specific) level of detail as established pursuant to the minimumchart of accounts referenced in N.J.A.C. 6A:23-2(g)1. Transfers of appropriations may be made by SchoolBoard resolution at any time during the fiscal year. The Board of Education increased the general fundbudget by $1,081,219 for additional transfers to the capital projects fund.
-36-
Fairview Board of EducationNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2015
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
D. Budgets/Budgetary Control: (continued)
Formal budgetary integration into the accounting system is employed as a management control device duringthe year. For governmental funds there are no substantial differences between the budgetary basis ofaccounting and accounting principles generally accepted in the United States of America with the exceptionof the legally mandated revenue recognition of the last state aid payment for budgetary purposes only andspecial revenue fund as noted below. Encumbrance accounting is also employed as an extension of formalbudgetary integration in the governmental fund types. Unencumbered appropriations lapse at fiscal year end.
The accounting records of the special revenue fund are maintained on the grant accounting budgetary basis. The grant accounting budgetary basis differs from GAAP in that the grant accounting budgetary basisrecognizes encumbrances as expenditures and also recognizes the related revenues, whereas the GAAP basisdoes not. Sufficient supplemental records are maintained to allow for the presentation of GAAP basisfinancial reports.
E. Encumbrances:
Under encumbrance accounting purchase orders, contracts and other commitments for the expenditure ofresources are recorded to reserve a portion of the applicable appropriation. Open encumbrances ingovernmental funds, other than the special revenue fund, are reported as reservations of fund balances atfiscal year end as they do not constitute expenditures or liabilities but rather commitments related tounperformed contracts for goods and services.
Open encumbrances in the special revenue fund, for which the Board has received advances, are reflectedin the balance sheet as unearned revenues at fiscal year end.
The encumbered appropriation authority carries over into the next fiscal year. An entry will be made at thebeginning of the next fiscal year to increase the appropriation reflected in the certified budget by theoutstanding encumbrance amount as of the current fiscal year end.
F. Cash, Cash Equivalents and Investments:
Cash and cash equivalents include petty cash, change funds, cash in banks and all highly liquid investmentswith a maturity of three months or less at the time of purchase and are stated at cost plus accrued interest. U.S. Treasury and agency obligations and certificates of deposit with maturities of one year or less whenpurchased are stated at cost. All other investments are stated at fair value.
New Jersey school districts are limited as to the types of investments and types of financial institutions theymay invest in. New Jersey statute 18A:20-37 provides a list of permissible investments that may bepurchased by New Jersey school districts.
-37-
Fairview Board of EducationNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2015
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
F. Cash, Cash Equivalents and Investments: (continued)
Additionally, the Board has adopted a cash management plan that requires it to deposit public funds in publicdepositories protected from loss under the provisions of the Governmental Unit Deposit Protection Act("GUDPA"). GUDPA was enacted in 1970 to protect Governmental Units from a loss of funds on depositwith a failed banking institution in New Jersey.
N.J.S.A. 17:9-41 et. seq. establishes the requirements for the security of deposits of governmental units. Thestatute requires that no governmental unit shall deposit public funds in a public depository unless such fundsare secured in accordance with the Act. Public depositories include Savings and Loan institutions, banks(both state and national banks) and savings banks the deposits of which are federally insured. All publicdepositories must pledge collateral, having a market value at least equal to five percent of the average dailybalance of collected public funds, to secure the deposits of Governmental Units. If a public depository fails,the collateral it has pledged, plus the collateral of all other public depositories, is available to pay the fullamount of their deposits to the Governmental Units.
G. Tuition Payable:
Tuition charges were established by the receiving district. The charges are subject to adjustment when thefinal costs have been determined.
H. Inventories:
On District-wide financial statements, inventories are presented at cost, which approximates market on afirst-in, first-out basis and are expensed when used.
On fund financial statements inventories are valued at cost, which approximates market, using thefirst-in-first-out (FIFO) method. Inventories of proprietary funds consist of food and goods held for resale,as well as supplies, and are expensed when used.
I. Prepaid Items:
Payments made to vendors for services that will benefit periods beyond June 30, 2015, are recorded asprepaid items using the consumption method. A current asset for the prepaid amount is recorded at the timeof purchase and an expenditure/expense is reported in the year in which services are consumed.
J. Short-Term Interfund Receivables/Payables:
On fund financial statements, receivables and payables resulting from short-term interfund loans areclassified as “interfund receivables/payables.” These amounts are eliminated in the governmental andbusiness-type activities columns of the statement of net position, except for the net residual amounts duebetween governmental and business-type activities, which are presented as internal balances.
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Fairview Board of EducationNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2015
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
K. Capital Assets:
General capital assets are those assets not specifically related to activities reported in the enterprise fund. These assets generally result from expenditures in the governmental funds. These assets are reported in thegovernmental activities column of the district -wide statement of net position but are not reported in the fundfinancial statements. Capital assets utilized by the enterprise fund are reported both in the business-typeactivity column of the District-wide statement of net position and in the fund.
All capital assets acquired or constructed during the year are recorded at actual cost. Donated fixed assetsare valued at their estimated fair market value on the date received. The capital assets acquired orconstructed prior to June 30, 1993 are valued at cost based on historical records or through estimationprocedures performed by an independent appraisal company. Donated capital assets are valued at theirestimated fair market value on the date received. The Board maintains a capitalization threshold of$2,000.00. The Board does not possess any infrastructure. Improvements are capitalized; the costs ofnormal maintenance and repairs that do not add to the value of the asset or materially extend an asset’s lifeare not.
All reported capital assets except land and construction in progress are depreciated. Improvements aredepreciated over the remaining useful lives of the related capital assets. Depreciation is computed using thestraight-line method over the following useful lives:
Description
GovernmentalActivities
Estimated Lives
Business-TypeActivity
Estimated Lives
Sites and Improvements 20 years N/ABuildings and Improvements 7-50 years N/AFurniture, Equipment and Vehicles 5-20 years 5-20 years
L. Compensated Absences:
Compensated absences are those absences for which employees will be paid, such as vacation, sick leave,and sabbatical leave. A liability for compensated absences that are attributable to services already rendered,and that are not contingent on a specific event that is outside the control of the Board and its employees, isaccrued as the employees earn the rights to the benefits. Compensated absences that relate to future services,or that are contingent on a specific event that is outside the control of the Board and its employees, areaccounted for in the period in which such services are rendered or in which such events take place.
For the District-wide Statements, the current portion is the amount estimated to be used in the followingyear. In accordance with GAAP, for the governmental funds, in the Fund Financial Statements, all of thecompensated absences are considered long-term and therefore, are not a fund liability and represents areconciling item between the fund level and District-wide presentations.
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Fairview Board of EducationNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2015
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
M. Unearned Revenue:
Unearned revenue arises when assets are recognized before revenue recognition criteria have been satisfied.
Unearned revenue in the special revenue fund represents cash that has been received but not yet earned. SeeNote 2(E) regarding the special revenue fund.
N. Accrued Liabilities and Long-term Obligations:
All payables, accrued liabilities and long-term obligations are reported in the District-wide financialstatements.
In general, governmental fund payables and accrued liabilities that, once incurred, are paid in a timelymanner and in full from current financial resources, are reported as obligations of the funds. However,claims and judgements, compensated absences, special termination benefits and contractually requiredpension contributions that will be paid from governmental funds are reported as a liability in the fundfinancial statements only to the extent that they are due for payment in the current year. Bonds, long-termobligations, and capital leases that will be paid from governmental funds are recognized as a liability in thefund financial statements when due.
O. Accounting and Financial Reporting for Pensions:
In fiscal year 2015, the District implemented GASB 68. This Statement amends GASB Statement No. 27.It improves accounting and financial reporting by state and local governments for pensions. It also improvesinformation provided by state and local government employers about financial support for pensions that isprovided by other entities. This Statement results from a comprehensive review of the effectiveness ofexisting standards of accounting and financial reporting for pensions with regard to providing decision usefulinformation, supporting assessments of accountability and interperiod equity, and creating additionaltransparency. This Statement replaces the requirement of Statement No. 27, Accounting for Pension by Stateand Local Governmental Employers, as well as the requirements of Statement No. 50, Pension Disclosures,as they relate to pensions that are provided through pension plans administered as trusts or equivalentarrangements that meet certain criteria. The requirements of Statements 27 and 50 remain applicable forpensions that are not covered by the scope of this Statement. This statement is effective for periodsbeginning after June 15, 2014.
The District has also implemented GASB Statement 71, Pension Transition for Contributions madeSubsequent to the Measurement Date-an amendment to GASB No. 68. The objective of this Statement isto address an issue regarding application of the transition provisions of Statement No. 68, Accounting andFinancial Reporting for Pensions. The issue relates to amounts associated with contributions, if any, madeby a state or local government employer or nonemployer contributing entity to a defined benefit pension planafter the measurement date of the government's beginning net pension liability.
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Fairview Board of EducationNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2015
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
O. Accounting and Financial Reporting for Pensions: (continued)
Statement 68 requires a state or local government employer (or nonemployer contributing entity in a specialfunding situation) to recognize a net pension liability measured as of a date (the measurement date) no earlierthan the end of its prior fiscal year. If a state or local government employer or nonemployer contributingentity makes a contribution to a defined benefit pension plan between the measurement date of the reportednet pension liability and the end of the government's reporting period, Statement 68 requires that thegovernment recognize its contribution as a deferred outflow of resources.
In addition, Statement 68 requires recognition of deferred outflows of resources and deferred inflows ofresources for changes in the net pension liability of a state or local government employer or nonemployercontributing entity that arise from other types of events. At transition to Statement 68, if it is not practicalfor an employer or nonemployer contributing entity to determine the amounts of all deferred outflows ofresources and deferred inflows of resources related to pensions, paragraph 137 of Statement 68 required thatbeginning balances for deferred outflows of resources and deferred inflows of resources not be reported.Consequently, if it is not practical to determine the amounts of all deferred outflows of resources anddeferred inflows of resources related to pensions, contributions made after the measurement date of thebeginning net pension liability could not have been reported as deferred outflows of resources at transition.This could have resulted in a significant understatement of an employer or nonemployer contributing entity'sbeginning net position and expense in the initial period of implementation.
This Statement amends paragraph 137 of Statement 68 to require that, at transition, a government recognizea beginning deferred outflow of resources for its pension contributions, if any, made subsequent to themeasurement date of the beginning net pension liability. Statement 68, as amended, continues to require thatbeginning balances for other deferred outflows of resources and deferred inflows of resources related topensions be reported at transition only if it is practical to determine all such amounts.
P. Fund Balances:
Fund balance is divided into five classifications based primarily on the extent to which the Board is boundto observe constraints imposed upon the resources in the governmental funds. The classifications are asfollows:
• Nonspendable fund balance includes amounts that are not in a spendable form (inventory,for example) or are required to be maintained intact (the principal of an endowment fund,for example).
• Restricted fund balance includes amounts that can be spent only for the specific purposesstipulated by external resource providers (for example, grant providers), constitutionally,or through enabling legislation (that is, legislation that creates a new revenue source andrestricts its use). Effectively, restrictions may be changed or lifted only with the consent ofresource providers.
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Fairview Board of EducationNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2015
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
P. Fund Balances: (continued)
• Committed fund balance includes amounts that can be used only for the specific purposesdetermined by a formal action of the Board’s highest level of decision-making authority. Commitments may be changed or lifted only by the government taking the same formalaction that imposed the constraint originally.
• Assigned fund balance comprises amounts intended to be used by the Board for specificpurposes. Intent can be expressed by the governing body or by an official or body to whichthe governing body delegates the authority. In governmental funds other than the generalfund, assigned fund balance represents the amount that is not restricted or committed. Thisindicates that resources in other governmental funds are, at a minimum, intended to be usedfor the purpose of that fund.
• Unassigned fund balance is the residual classification for the general fund and includes allamounts not contained in the other classifications. Unassigned amounts are technicallyavailable for any purpose. If another governmental fund has a fund balance deficit, then itwill be reported as a negative amount in the unassigned classification in that fund. Positiveunassigned amounts will be reported only in the general fund.
Q. Net Position:
Net position represent the difference between assets and deferred outflows of resources and liabilities anddeferred inflows of resources. Net position invested in capital assets, net of related debt consists of capitalassets, net of accumulated depreciation, reduced by the outstanding balances of any borrowings used for theacquisition, construction or improvement of those assets. Net position are reported as restricted when thereare limitations imposed on their use either through the enabling legislation adopted by the Board or throughexternal restrictions imposed by creditors, grantors or laws or regulations of other governments.
The Board applies restricted resources first when an expense is incurred for purposes for which bothrestricted and unrestricted net position are available.
R. Operating Revenues and Expenses:
Operating revenues are those revenues that are generated directly from the primary activity of the proprietaryfunds. For the Board, these revenues are sales for the Food Service Program. Operating expenses arenecessary costs incurred to provide the good or service that is the primary activity of the fund.
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Fairview Board of EducationNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2015
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
S. Extraordinary and Special Items:
Extraordinary items are transactions or events that are both unusual in nature and infrequent in occurrence. Special items are transactions or events that are within the control of the Board and that are either unusualin nature or infrequent in occurrence. Neither type of transaction occurred during the fiscal year.
T. Allocation of Indirect Expenses:
The District reports all direct expenses by function in the Statement of Activities. Direct expenses are thosethat are clearly identifiable with a function. Indirect expenses are allocated to functions but are reportedseparately in the Statement of Activities. Employee benefits, including the employer’s share of socialsecurity, workers compensation, and medical and dental benefits, were allocated based on salaries of thatprogram. TPAF on-behalf contributions and changes in compensated absences have not been allocated andhave been reported as unallocated benefits on the Statement of Activities. Depreciation expense, wherepracticable, is specifically identified by function and is included in the indirect expense column of theStatement of Activities. Depreciation expense that could not be attributed to a specific function isconsidered an indirect expense and is reported separately on the Statement of Activities as unallocateddepreciation. Interest on long-term debt is considered an indirect expense and is reported separately on theStatement of Activities.
U. Use of Estimates:
The preparation of financial statements in accordance with accounting principles generally accepted in theUnited States of America requires management to make estimates and assumptions that effect certainreports, amounts and disclosures. Accordingly, actual results could differ from those estimates.
V. Recent Accounting Pronouncements
The Governmental Accounting Standards Board (GASB) issued Statement No. 68, “Accounting andFinancial Reporting for Pensions – an amendment of GASB Statement No. 27”. This statement, which iseffective for fiscal periods beginning after June 15, 2014 and was implemented by the District for the yearended June 30, 2015.
The Governmental Accounting Standards Board (GASB) issued Statement No. 71 “Pension Transition forContributions Made Subsequent to the Measurement Date-an-amendment of GASB Statement No. 68”. Theprovisions of this statement are required to be applied simultaneously with the provisions of Statement 68which is effective for periods beginning after June 15, 2014 and was implemented by the District for the yearended June 30, 2015.
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Fairview Board of EducationNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2015
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
V. Recent Accounting Pronouncements: (continued)
The Government Accounting Standards Board issued GASB Statement No. 72, Fair Value Measurementand Application. This Statement addresses accounting and financial reporting issues related to fair valuemeasurements. The definition of fair value is the price that would be received to sell an asset or paid totransfer a liability in an orderly transaction between market participants at the measurement date. ThisStatement also provides guidance for determining a fair value measurement for financial reporting purposes. This Statement also provides guidance for applying fair value to certain investments and disclosures relatedto all fair value measurements. The District is currently reviewing what effect, if any, this Statement mighthave on future financial statements.
The Government Accounting Standards Board issued GASB Statement No. 73, Accounting and FinancialReporting for Pensions and Related Assets That Are Not Within the Scope of GASB Statement 68 andAmendments to Certain Provisions of GASB Statements 67 and 68. This Statement is effective for fiscalyears beginning after June 15, 2015 – except those provisions that address employers and governmentalnonemployer contributing entities for pensions that are not within the scope of Statement 68, which areeffective for financial statements for fiscal years beginning after June 15,2016. The District is currentlyreviewing what effect, if any, this Statement might have on future financial statements.
The Government Accounting Standards Board issued GASB Statement No. 74, Financial Reporting forPostemployment Benefit Plans Other Than Pension Plans. This Statement applies to OPEB plans andbasically parallels GASB Statement 67 and replaces GASB Statement 43 and is effective for fiscal yearsbeginning after June 15, 2016. The District is currently reviewing what effect, if any, this Statement mighthave on future financial statements.
The Governmental Accounting Standards Board (GASB) issued Statement No. 68, “Accounting andFinancial Reporting for Pensions – an amendment of GASB Statement No. 27”. This statement, which iseffective for fiscal periods beginning after June 15, 2014 and was implemented by the District for the yearended June 30, 2015.
The Government Accounting Standards Board issued GASB Statement No. 75, Accounting and FinancialReporting for Postemployment Benefits Other Than Pensions. This Statement applies to governmentemployers who provided OPEB plans to their employees and basically parallels GASB Statement 68 andreplaces GASB Statement 45. The Statement is effective for fiscal years beginning after June 15, 2017. TheDistrict is currently reviewing what effect, if any, this Statement might have on future financial statements.
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Fairview Board of EducationNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2015
NOTE 3. CASH AND CASH EQUIVALENTS AND INVESTMENTS
Cash
Custodial Credit Risk - Deposits
Custodial credit risk is the risk that in the event of a bank failure, the government’s deposits may not bereturned to it. The District’s policy is based on New Jersey Statutes requiring cash be deposited only in NewJersey based banking institutions that participate in New Jersey Governmental Depository Protection Act(GUDPA) or in qualified investments established in New Jersey Statutes 18A:20-37 that are treated as cashequivalents. As of June 30, 2015, $-0- of the District’s bank balance of $2,143,286 was exposed to custodialcredit risk.
Investments
Investment Rate Risk
The District does not have a formal investment policy that limits investment maturities as a means ofmanaging its exposure to fair value losses arising from increasing interest rates. However, New JerseyStatutes 18A:20-37 limits the length of time for most investments to 397 days.
Credit Risk
New Jersey Statutes 18A:20-37 limits school district investments to those specified in the Statutes. The typeof allowance investments are Bonds of the United States of America, bonds or other obligations of theschool districts or bonds or other obligations of the local unit or units within which the school district islocated: obligations of federal agencies not exceeding 397 days; government money market mutual funds;the State of New Jersey Cash Management Plan; local government investment pools; or repurchase of fullycollateralized securities.
Concentration of Credit Risk
The District places no limit on the amount the District may invest in any one issuer.
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Fairview Board of EducationNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2015
NOTE 4. RECEIVABLES
Receivables at June 30, 2015, consisted of accounts and intergovernmental. All receivables are consideredcollectible in full. A summary of the principal items of intergovernmental receivables follows:
Governmental
Fund Financial
Statements
Enterprise
Fund
District Wide
Financial
Statements
Other Receivables $1,127,757 $ $1,127,757
State Aid 621,298 652 621,950
Federal Aid 168,332 29,461 197,793
Due from Other Funds 84,057 353
Gross Receivables 2,001,444 30,466 1,947,500
Less: Allowance for Uncollectibles
Total Receivables, Net $2,001,444 $30,466 $1,947,500
NOTE 5. INTERFUND BALANCE AND ACTIVITY
Balance due to/from other funds at June 30, 2015, consist of the following:
$ 353 Due to the Enterprise Fund from the General Fund for subsidiary receipts
not turned over.
84,057 Due to the General Fund from the Special Revenue Fund for short term loans.
$84,410
NOTE 6. CAPITAL ASSETS
Capital asset activity for the fiscal year ended June 30, 2015 was as follows:
Beginning
Balance
6/30/14 Additions Retirements
Ending
Balance
6/30/15
Governmental Activities
Capital Assets Not Being Depreciated
Land 1,320,213 1,320,213
Total Capital Assets Not Being Depreciated 1,320,213 1,320,213
Site Improvements 313,485 313,485
Buildings and Building Improvements 7,908,124 835,700 8,743,824
Machinery and Equipment 2,809,298 2,809,298
Totals at Historical Cost 11,030,907 835,700 11,866,607
Less Accumulated Depreciation:
Sites and Improvements (182,812) (11,137) (193,949)
Buildings and Improvements (5,981,792) (115,025) (6,096,817)
Machinery and Equipment (2,173,096) (119,219) (2,292,315)
Total Accumulated Depreciation (8,337,700) (245,381) (8,583,081)
Total Capital Assets, Being Depreciated,
Net of Accumulated Depreciation 2,693,207 590,319 3,283,526
Governmental Activities Capital Assets, Net 4,013,420 590,319 4,603,739
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Fairview Board of EducationNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2015
NOTE 6. CAPITAL ASSETS, (continued)
Beginning
Balance
6/30/14 Additions Retirements
Ending
Balance
6/30/15
Business-Type Activity
Equipment 63,070 63,070
Totals at historical 63,070 63,070
Less Accumulated Depreciation for:
Equipment (45,556) (4,132) (49,688)
Total Accumulated Depreciation (45,556) (4,132) (49,688)
Business-Type Activity Capital Assets, Net 17,514 (4,132) 13,382
Depreciation expense was not allocated to governmental functions. It appears on the statement ofactivities as unallocated depreciation.
NOTE 7. LONG-TERM OBLIGATION ACTIVITY
Changes in long-term obligations for the year ended June 30, 2015 were as follows:
Balance
June 30, 2014 Issued Retired
Balance
June 30, 2015
Amount
Due Within
One Year
Bonds Payable:
General Obligation Debt $295,000 $ $(70,000) $225,000 $70,000
Total Bonds Payable 295,000 (70,000) 225,000 70,000
Other Liabilities:
Obligations Under Capital Lease 124,358 (17,492) 106,866 38,833
Compensated Absences Payable 534,495 27,133 (65,288) 496,340
Net Pension Liability PERS 3,532,047 389,485 3,921,532
Total Other Liabilities 4,066,542 540,976 (82,780) 4,524,738 38,833
4,361,542 540,976 ($152,780) $4,749,738 $108,833
A. Bonds Payable:
Bonds are authorized in accordance with State law by the voters of the municipality through referendums. All bonds are retired in serial installments within the statutory period of usefulness. Bonds issued by theBoard are general obligation bonds.
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Fairview Board of EducationNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2015
NOTE 7. LONG-TERM OBLIGATION ACTIVITY, (continued)
Outstanding bonds payable at June 30, 2015 consisted of the following:
IssueIssueDate
InterestRates
Date ofMaturity
PrincipalBalance
June 30, 2015
ERIP Refunding Bonds 10/1/2003 5.50%-5.75% 10/1/2017 $225,000
Principal and interest due on serial bonds outstanding is as follows:
Year Ending June 30, Principal Interest Total
2016 $70,000 $10,925 $80,9252017 75,000 6,756 81,7562018 80,000 2,300 82,300
$225,000 $19,981 $244,981
B. Bonds Authorized But Not Issued:
As of June 30, 2015 the Board has no authorized but not issued bonds.
C. Capital Leases
The District is leasing various equipment including Apple I-Pads and accessories. The Apple-I Pad’s capitalleases are for thirty-six months. The following is a schedule of future minimum lease payments under thesecapital leases, and the present value of the net minimum lease payments at June 30, 2015:
Year Ending June 30, Principal Interest Total
2016 $39,130 $9,502 $48,6322017 43,525 5,107 48,6322018 24,206 824 25,030
$106,861 $15,433 $122,294
Total minimum lease paymentsLess: Amount representing interestPresent value of lease payments
$122,294 (15,433)$106,861
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Fairview Board of EducationNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2015
NOTE 8. OPERATING LEASES
The District has commitments to lease certain office equipment and a building for classroom use underoperating leases that expire in 2019. Total operating lease payments made during the year ended June 30,2015 were $183,255. Future minimum lease payments are as follows:
Year Ending June 30, Amount
2016 $184,1912017 43,0992018 27,1382019 13,569
$267,997
NOTE 9. PENSION PLANS
Description of Plans - All required employees of the District are covered by either the Public Employees'Retirement System or the Teachers' Pension and Annuity Fund which have been established by state statuteand are administered by the New Jersey Division of Pension and Benefits (Division). According to the Stateof New Jersey Administrative Code, all obligations of both Systems will be assumed by the State of NewJersey should the Systems terminate. The Division issues a publicly available financial report that includesthe financial statements and required supplementary information for the Public Employees RetirementSystem and the Teachers' Pension and Annuity Fund. These reports may be obtained by writing to theDivision of Pensions and Benefits, PO Box 295, Trenton, New Jersey, 08625 or reports can be accessed onthe internet at: http://www.state.nj.us/treasury/pensions/annrpts_archive.htm.
Teachers' Pension and Annuity Fund (TPAF) - The Teachers' Pension and Annuity Fund was establishedas of January 1, 1955, under the provisions of N.J.S.A. 18A:66 to provide retirement benefits, death,disability and medical benefits to certain qualified members. The Teachers' Pension and Annuity Fund isconsidered a cost-sharing multiple-employer plan with a special funding situation, as under current statute,all employer contributions are made by the State of New Jersey on behalf of the District and the system'sother related non-contributing employers. Membership is mandatory for substantially all teachers ormembers of the professional staff certified by the State Board of Examiners, and employees of theDepartment of Education who have titles that are unclassified, professional and certified.
Public Employees' Retirement System (PERS) - The Public Employees' Retirement System (PERS) wasestablished as of January 1, 1955 under the provisions of N.J.S.A. 43:15A to provide retirement, death,disability and medical benefits to certain qualified members. The Public Employees' Retirement System isa cost-sharing multiple-employer plan. Membership is mandatory for substantially all full-time employeesof the State of New Jersey or any county, municipality, school district, or public agency, provided theemployee is not required to be a member of another state-administered retirement system or other state orlocal jurisdiction.
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Fairview Board of EducationNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2015
NOTE 9. PENSION PLANS, (continued)
Defined Contribution Retirement Program (DCRP) - The Defined Contribution Retirement Program(DCRP) was established as of July 1, 2008 under the provisions of Chapter 92, P.L. 2008 and Chapter 103,P.L. 2008 (NJSA 43:15C-1 et seq). The DCRP is a cost-sharing multiple-employer defined contributionpension fund. The DCRP provides eligible members, and their beneficiaries with a tax-sheltered, definedcontribution retirement benefit, along with life insurance and disability coverage. Vesting and benefitprovisions are established by NJSA 43:15C-1 et seq.
Contribution Requirements Fund Based Statements - The contribution policy is set by laws of the Stateof New Jersey and, in most retirement systems, contributions are required by active members andcontributing employers. Plan member and employer contributions may be amended by State of New Jerseylegislation. The pension funds provide for employee contributions based on 5.5% for PERS and 5.5% forTPAF of the employee’s annual compensation. Pursuant to the provisions of Chapter 78, P.L. 2011, thisamount will increase to 6.5% plus an additional 1% phased in over 7 years beginning in the first year. Forfiscal year 2012, the member rate will increase in October 2011. The phase in will take place on July 1 ofeach subsequent fiscal year. Employers are required to contribute at an actuarially determined rate in allFunds except the SACT. The actuarially determined employer contribution includes funding for cost-of-living adjustments and noncontributory death benefits in the PERS and TPAF. In the PERS and TPAF, theemployer contribution includes funding for post-retirement medical premiums.
During the year ended June 30, 2015 for TPAF, which is a cost sharing plan with special funding situations,annual pension cost equals annual required contribution. For PERS, which is a cost sharing multi-employerdefined benefit pension plan, the annual pension cost differs from the annual required contribution due tothe enactment of Chapter 114, P.L. 1997. TPAF employer contributions are made annually by the State ofNew Jersey to the pension system on behalf of the Board. PERS employer contributions are made annuallyby the Board to the pension system in accordance with Chapter 114, P.L. 1997.
The Board’s contribution to PERS AND DCRP, equal to the required contributions for each year as reportedin the fund based statements, were as follows:
YearEnding PERS DCRP6/30/15 $172,670 $14,1206/30/14 155,055 12,5126/30/13 136,876 17,932
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Fairview Board of EducationNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2015
NOTE 9. PENSION PLANS, (continued)
The State of New Jersey contribution to TPAF (paid on-behalf of the District) for normal and post retirementbenefits have been included in the fund-based statements as revenues and expenditures in accordance withGASB 24, paragraphs 7 through 13, as follows:
YearEnding
PensionContributions
Post-RetirementMedical
ContributionsNCGI
Premium6/30/15 $325,683 $554,219 $23,4316/30/14 239,344 427,074 21,1266/30/13 390,985 465,366 20,571
In addition, the post-retirement medical benefits are included in the district-wide financial statements.
Also, in accordance with N.J.S.A. 18A:66-66 the State of New Jersey reimbursed the Board $521,112 duringthe year ended June 30, 2015 for the employer’s share of social security contributions for TPAF membersas calculated on their base salaries. This amount has been included in the fund-based statements as revenuesand expenditures in accordance with GASB 24, paragraphs 7 through 13.
ACCOUNTING AND FINANCIAL REPORTING FOR PENSION IN THE DISTRICT-WIDESTATEMENTS PER - GASB NO. 68
Public Employees Retirement System (PERS)
At June 30, 2015, the District reported a liability of $3,921,532 for its proportionate share of the net pensionliability. The net pension liability was measured as of June 30, 2014, and the total pension liability used tocalculate the net pension liability was determined by an actuarial valuation as of that date. The District'sproportion of the net pension liability was based on a projection of the District's long-term share ofcontributions to the pension plan relative to the projected contributions of all participating school districts,actuarially determined. At June 30, 2014, the District's proportion was .0209452961 percent, which was anincrease of .0000246450 percent from its proportion measured as of June 30, 2013.
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Fairview Board of EducationNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2015
NOTE 9. PENSION PLANS, (continued)
For the year ended June 30, 2015, the District recognized pension expense of $274,667. At June 30, 2015,the District reported deferred outflows of resources and deferred inflows of resources related to PERS fromthe following sources:
DeferredOutflows ofResources
DeferredInflows ofResources
Changes of assumptions $123,314 $ Net difference between projected and actual earnings on pension plan investments 233,702Changes in proportion and differences between District contributions and proportionate share of contributions 397,876District contributions subsequent to the measurement date 174,559
Total $695,749 $233,702
The $174,559 reported as deferred outflows of resources related to pensions resulting from school districtcontributions subsequent to the measurement date (i.e. for the school year ending June 30, 2015, the planmeasurement date is June 30, 2014) will be recognized as a reduction of the net pension liability in the yearended June 30, 2016. Other amounts reported as deferred outflows of resources and deferred inflows ofresources related to pensions will be recognized in pension expense as follows:
Year ended June 30:2016 $(35,757)2017 (35,757)2018 (35,757)2019 22,668
Thereafter 9,974
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Fairview Board of EducationNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2015
NOTE 9. PENSION PLANS, (continued)
Additional Information
Local Group Collective balances at December 31, 2014 and 2013 are as follows:
Dec. 31, 2014 Dec. 31, 2013
Collective deferred outflows of resources $952,194,675 Not Available
Collective deferred inflows of resources 1,479,224,662 Not Available
Collective net pension liability18,722,735,003 $19,111,986,911
District's Proportion .0209452961% .0184807929%
Actuarial Assumptions
The total pension liability for the June 30, 2014 measurement date was determined by an actuarial valuationas of July 1, 2013, which rolled forward to June 30, 2014. The total pension liability for the July 1, 2013measurement date was determined by an actuarial valuation as of July 1, 2013. This actuarial valuation usedthe following assumptions, applied to all periods in the measurement.
Inflation 3.01 PercentSalary Increases: 2012-2021 2.15-4.40 Percent (based on age) Thereafter 3.15-5.40 Percent (based on age)
Investment Rate of Return 7.90 Percent
The actuarial assumptions used in the June 30, 2013 valuation were based on the results of an actuarialexperience study for the period July 1, 2008 to June 30, 2011.
Mortality Rates
Mortality rates were based on the RP-2000 Combined Healthy Male and Female Mortality Tables (setbackone year for females) with adjustments for mortality improvements from the base year of 2012 based onProjection Scale AA.
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Fairview Board of EducationNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2015
NOTE 9. PENSION PLANS, (continued)
Long-Term Rate of Return
In accordance with State statute, the long-term expected rate of return on plan investments is determined bythe State Treasurer, after consultation with the Directors of the Division of Investments and Division ofPensions and Benefits, the board of trustees and the actuaries. Best estimates of arithmetic real rates of returnfor each major asset class included in PERS's target asset allocation as of June 30, 2014 are summarized inthe following table:
Asset ClassTarget
Allocation
Long-TermExpected RealRate of Return
Cash 6.00% 0.80%Core Bond 1.00% 2.49%Intermediate Term Bonds 11.20% 2.26%Mortgages 2.50% 2.17%High Yield Bonds 5.50% 4.82%Inflation Indexed Bonds 2.50% 3.51%Broad U.S. Equities 25.90% 8.22%Developed Foreign Markets 12.70% 8.12%Emerging Market Equities 6.50% 9.91%Private Equity 8.25% 13.02%Hedge Funds/Absolute Returns 12.25% 4.92%Real Estate (Property) 3.20% 5.80%Commodities 2.50% 5.35%
100.00%
Discount Rate
The discount rate used to measure the total pension liability was 5.39% and 5.55% as of June 30, 2014 and2013, respectively. This single blended discount rate was based on the long-term expected rate of return onpension plan investments of 7.9%, and a municipal bond rate of 4.29% and 4.63% as of June 30, 2014and 2013, respectively, based on the Bond Buyer Go 20-Bond Municipal Bond Index which includes tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher. The projection ofcash flows used to determine the discount rate assumed that contributions from plan members will be madeat the current member contribution rates and that contributions from employers will be made based on theaverage of the last five years of contributions made in relation to the last five years of recommendedcontributions. Based on those assumptions, the plan's fiduciary net position was projected to be availableto make projected future benefit payments of current plan members through 2033. Therefore, the long-termexpected rate of return on plan investments was applied to projected benefit payments through 2033, andthe municipal bond rate was applied to projected benefit payments after that date in determining the totalpension liability.
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Fairview Board of EducationNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2015
NOTE 9. PENSION PLANS, (continued)
Sensitivity of the Collective Net Pension Liability to Changes in the Discount Rate
The following presents the collective net pension liability of the participating employers as of June 30, 2014respectively, calculated using the discount rate as disclosed above as well as what the collective net pensionliability would be if it was calculated using a discount rate that is 1 -percentage point lower or 1- percentage-point higher than the current rate:
June 30, 2014 1%
Decrease4.39%
At CurrentDiscount Rate
5.39%
1%Increase6.39%
District's proportionate share of the pension liability $4,933,421 $3,921,532 $3,071,803
Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s fiduciary net position is available in the separately issuedFinancial Report for the State of New Jersey Public Employees Retirement System (PERS).
Teachers Pensions and Annuity Fund (TPAF)
The employer contributions for local participating employers are legally required to be funded by the Statein accordance with N.J.S.A 18:66-33. Therefore, these local participating employers are considered to bein a special funding situation as defined by GASB Statement No. 68 and the State is treated as anonemployer contributing entity. Since the local participating employers do not contribute directly to theplan (except for employer specific financed amounts), there is no net pension liability or deferred outflowsor inflows to report in the financial statements of the local participating employers. However, the notes tothe financial statements of the local participating employers must disclose the portion of the nonemployercontributing entities' total proportionate share of the net pension liability that is associated with the localparticipating employer.
The portion of the TPAF Net Pension Liability that was associated with the District recognized at June 30,2015 was as follows:
Net Pension Liability:District's proportionate share $ -0- State's proportionate share
associated with the District 32,907,617
$32,907,617
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Fairview Board of EducationNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2015
NOTE 9. PENSION PLANS, (continued)
The net pension liability was measured as of June 30, 2014, and the total pension liability used to calculatethe net pension liability was determined by an actuarial valuation as of June 30, 2013. The net pensionliability associated with the District was based on a projection of the District's long-term share ofcontributions to the pension plan relative to the projected contributions of all participating school districtsand the State, actuarially determined. At June 30, 2014, the proportion of the TPAF net pension liabilityassociated with the District was .0615708528%.
For the year ended June 30, 2015, the District recognized on-behalf pension expense and revenue of$1,770,739 for contributions provided by the State in the District-Wide Financial Statements.
Actuarial Assumptions
The total pension liability for the June 30, 2014 measurement date was determined by an actuarial valuationas of July 1, 2013, which was rolled forward to June 30, 2014. The total pension liability for the June 30,2013 measurement date was determined by an actuarial valuation as of July 1, 2013. This actuarial valuationused the following actuarial assumptions, applied to all periods in the measurement:
Inflation rate 2.50%Salary Increases: 2012-2021 Varies based on experience Thereafter Varies based on experience
Investment Rate of Return 7.90%
Mortality Rates
Mortality rates were based on the RP-2000 Health Annuitant Mortality Table for Males or Females, asappropriate, with adjustments for mortality improvements based on Scale AA. Pre-retirement mortalityimprovements for active members are projected using Scale AA from the base year of 2000 until thevaluation date plus 15 years to account for future mortality improvement. Post-retirement mortalityimprovements for non-disabled annuitants are projected using Scale AA from the base year of 2000 formales and 2003 for females until the valuation date plus 7 years to account for future mortality improvement.The actuarial assumptions used in the July 1, 2013 valuation were based on the results of an actuarialexperience study for the period July 1, 2009 to June 30, 2012.
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Fairview Board of EducationNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2015
NOTE 9. PENSION PLANS, (continued)
Long-Term Expected Rate of Return
In accordance with State statute, the long-term expected rate of return on plan investments is determined bythe State Treasurer, after consultation with the Directors of the Division of Investments and Division ofPensions and Benefits, the board of trustees and the actuaries. Best estimates of arithmetic real rates of returnfor each major asset class included in TPAF's target asset allocation as of June 30, 2014 are summarized inthe following table:
Asset ClassTarget
Allocation
Long-TermExpected RealRate of Return
Cash 6.00% 0.50%Core Fixed Income 0.00% 2.19%Core Bonds 1.00% 1.38%Short-Term Bonds 0.00% 1.00%Intermediate-Term Bonds 11.20% 2.60%Long-Term Bonds 0.00% 3.23%Mortgages 2.50% 2.84%High Yield Bonds 5.50% 4.15%Non-US Fixed Income 0.00% 1.41%Inflation-Indexed Bonds 2.50% 1.30%Broad US Equities 25.90% 5.88%Large Cap US Equities 0.00% 5.62%Mid Cap US Equities 0.00% 6.39%Small Cap US Equities 0.00% 7.39%Developed Foreign Equities 12.70% 6.05%Emerging Market Equities 6.50% 8.90%Private Equity 8.25% 9.15%Hedge Funds Absolute Return 12.25% 3.85%Real Estate (Property) 3.20% 4.43%Real Estate (REITS) 0.00% 5.58%Commodities 2.50% 3.60%Long Credit Bonds 0.00% 3.74%
100.00%
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Fairview Board of EducationNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2015
NOTE 9. PENSION PLANS, (continued)
Discount Rate
The discount rate used to measure the total pension liability was 4.68% and 4.95% as of June 30, 2014 and2013, respectively. This single blended discount rate was based on the long-term expected rate of return onpension plan investments of 7.9%, and a municipal bond rate of 4.29% and 4.63% as of June 30, 2014and 2013, respectively, based on the Bond Buyer Go 20-Bond Municipal Bond Index which includes tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher. The projection ofcash flows used to determine the discount rate assumed that contributions from plan members will be madeat the current member contribution rates and that contributions from employers will be made based on theaverage of the last five years. Based on those assumptions, the plan's fiduciary net position was projectedto be available to make projected future benefit payments of current plan members through 2027. Therefore,the long-term expected rate of return on plan investments was applied to projected benefit payments through2027, and the municipal bond rate was applied to projected benefit payments after that date in determiningthe total pension liability. Sensitivity of the Net Pension Liability to Changes in the Discount Rate
Because the District's proportionate share of the net pension liability is zero, consideration of potentialchanges in the discount rate is not applicable to the District.
NOTE 10. POST-RETIREMENT BENEFITS
Chapter 384 of Public Laws 1987 and Chapter 6 of Public Laws 1990 required Teachers’ Pension andAnnuity Fund (TPAF) and the Public Employees’ Retirement System (PERS), respectively, to fund post-retirement medical benefits for those State employees who retire after accumulating 25 years of creditedservice or on a disability retirement. P.L. 2007, c.103 amended the law to eliminate the funding of post-retirement medical benefits through the TPAF and PERS. It created separate funds outside of the pensionplans for the funding and payment of post-retirement medical benefits for retired State employees and retirededucational employees. As of June 30, 2014, there were 103,432 retirees receiving post-retirement medicalbenefits, and the State contributed $1.04 billion on their behalf. The cost of these benefits is funded throughcontributions by the State in accordance with P.L. 1994 Chapter 62. Funding of post-retirement medicalpremiums changed from a prefunding basis to a pay-as-you-go basis beginning in fiscal year 1994.
The State is also responsible for the cost attributable to P.L. 1992 Chapter 126, which provides employerpaid health benefits to members of PERS and the Alternate Benefit Program who retired from a board ofeducation or county college with 25 years of service. The State paid $165.8 million toward Chapter 126benefits for 18,122 eligible retired members in Fiscal Year 2014.
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Fairview Board of EducationNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2015
NOTE 11. DEFERRED COMPENSATION
The Board offers its employees a choice of the following deferred compensation plans created in accordancewith Internal Revenue Code Section 403(b). The plans, which are administered by the entities listed below,permits participants to defer a portion of their salary until future years. Amounts deferred under the plansare not available to employees until termination, retirement, death or unforeseeable emergency. The planadministrators are as follows:
ValicEquitablePrudential Financial
NOTE 12. RISK MANAGEMENT
The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;errors and omissions; injuries to employees; and natural disasters.
Property and Liability Insurance - The District maintains commercial insurance coverage for property,liability, student accident and surety bonds. A complete schedule of insurance coverage can be found in theStatistical Section of this Comprehensive Annual Financial Report.
There has been no significant reduction in insurance coverage from the previous year nor have there beenany settlements in excess of insurance coverages.
New Jersey Unemployment Compensation Insurance - The District has elected to fund its New JerseyUnemployment Compensation Insurance under the “Contributory Method”. Under this method, the Districtremits all contributions directly to the State of New Jersey Unemployment Trust Fund.
NOTE 13. CAPITAL RESERVE ACCOUNT
A capital reserve account was established by the Fairview Board of Education by inclusion of $552,000 onJuly 25, 2012 for the accumulation of funds for use as capital outlay expenditures in subsequent fiscal years. The capital reserve account is maintained in the general fund and its activity is included in the general fundannual budget.
Funds placed in the capital reserve account are restricted to capital projects in the district’s approved LongRange Facilities Plan (LRFP) and updated annually in the Quality Assurance Annual Report (QAAR). Uponsubmission of the LRFP to the department, a district may increase the balance in the capital reserve byappropriating funds in the annual general fund budget certified for taxes or by transfer by board resolutionat year end of any unanticipated revenue or unexpended line-item appropriation amounts, or both. A districtmay also appropriate additional amounts when the express approval of the voters has been obtained either
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Fairview Board of EducationNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2015
NOTE 13. CAPITAL RESERVE ACCOUNT, (continued)
by a separate proposal at budget time or by a special question at one of the four special elections authorizedpursuant to N.J.S.A. 19:60-2. Pursuant to N.J.A.C. 6A:23A-14.1(g), the balance in the account cannot atany time exceed the local support costs of uncompleted capital projects in its approved LRFP.
The activity of the capital reserve account for the July 1, 2014 to June 30, 2015 fiscal year is as follows:
Beginning Balance, July 1, 2014 $1,252,000
Increased by: Deposits Approved by Board Resolution 25,000
Decreased by: Budget Appropriations 1,234,700
Ending Balance, June 30, 2015 $ 42,300
NOTE 14. TUITION RESERVE
A tuition reserve was established by the Fairview Board of Education by inclusion of $520,000 on July 25,2012 for the accumulation of funds for use in subsequent fiscal years. The reserve for tuition is maintainedin the general fund. The tuition reserve represent a year end fund balance classification to reserveunrestricted fund balance for a foreseeable future tuition adjustment pursuant to N.J.A.C. 6A:23A-17.1(f). The tuition reserve enables the District to reserve fund balance for an anticipated large tuition adjustmentfor the current contract year. The major contributing factor for tuition adjustments and use of the reserveis a significant change from estimated to the actual enrollment.
The activity of the Tuition Reserve for the July 1, 2014 to June 30, 2015 fiscal year is as follows:
Beginning Balance, July 1, 2014 $325,000
Increased by: Deposits Approved by Board Resolution 400,000
Decreased by: Budget Appropriations 125,000
Ending Balance, June 30, 2015 $600,000
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Fairview Board of EducationNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2015
NOTE 15. FUND BALANCE APPROPRIATED
General Fund [Exhibit B-1] - Of the $1,580,015 General Fund fund balance at June 30, 2015, $191,890is reserved for encumbrances; $329,939 is reserved as excess surplus in accordance with N.J.S.A. 18A:7F-7$184,306 of the total reserve for excess surplus has been appropriated and included as anticipated revenuefor the year ending June 30, 2016); $42,300 has been reserved in the Capital Reserve Account; $600,000has been reserved in the Tuition Reserve Account; $509,107 of unreserved and undesignated has beenappropriated and included as anticipated revenue for the year ended June 30, 2016; $(93,221) is unreservedand undesignated.
Debt Service Fund - The Debt Service Fund balance at June 30, 2015 of $1 is unreserved and undesignated.
NOTE 16. CALCULATION OF EXCESS SURPLUS
In accordance with N.J.S.A. 18A:7F-7 as amended, the designation for Reserved Fund Balance - ExcessSurplus is a required calculation pursuant to the New Jersey Comprehensive Educational Improvement andFinancing Act of 1996 (CEIFA). New Jersey school districts are required to reserve General Fund fundbalance at the fiscal year end of June 30 if they did not appropriate a required minimum amount as budgetedfund balance in their subsequent years’ budget. The excess fund balance at June 30, 2015 is $329,939. Ofthis amount, $145,633 is the result of current year’s operations.
NOTE 17. RESTATEMENT
Net position for June 30, 2014 was restated in the amount of $(3,532,047) to reflect the net pension liabilityat June 30, 2013 for the Public Employee Retirement System (PERS) as per Governmental AccountingStandards Board ("GASB") number 68. This resulted in restatement of net position as of June 30, 2014 asfollows:
GovernmentalActivities
Net Position at June 30, 2014 $5,609,039Prior Period Adjustment for Net Pension Liability 3,532,047
Net Position at June 30, 2014 - Restated $2,076,992
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Fairview Board of EducationNotes to the Basic Financial Statementsfor the fiscal year ended June 30, 2015
NOTE 18. CONTINGENT LIABILITIES
Grant Programs - The school district participates in federally assisted grant programs. These programs aresubject to program compliance audits by the grantors or their representatives. The school district ispotentially liable for expenditures which may be disallowed pursuant to the terms of these grant programs. Management is not aware of any material items of noncompliance which would result in the disallowanceof program expenditures.
Litigation - The District is a party defendant in some lawsuits, none of a kind unusual for a school districtof its size and scope of operation. In the opinion of the Board's Attorney the potential claims against theDistrict not covered by insurance policies would not materially affect the financial condition of the District.
NOTE 19. SUBSEQUENT EVENTS
The Board has evaluated subsequent events through November 9, 2015, the date which the financialstatements were available to be issued and no other items were noted for disclosure.
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REQUIRED SUPPLEMENTARY
INFORMATION - PART II
BUDGETARY COMPARISON SCHEDULES
Page 1 of 4
Exhibit C-1
BudgetOriginal Transfers/ Final VarianceBudget Adjustments Budget Actual Final to Actual
REVENUES:General Fund:
Revenues from Local Sources: Local Tax Levy 13,448,133 13,448,133 13,448,133Other Local Governmental Units 100,000 100,000 (100,000) Tuition from Summer School 14,000 14,000 10,530 (3,470) Unrestricted Miscellaneous Revenues 227,000 227,000 357,454 130,454Total - Local Sources 13,789,133 13,789,133 13,816,117 26,984Revenues from State Sources:
Categorical Special Education Aid 947,543 947,543 947,543Equalization Aid 5,842,254 5,842,254 5,842,254Categorical Security Aid 109,205 109,205 109,205Categorical Transportation Aid 31,122 31,122 31,122Under Adequacy Aid 428,905 428,905 428,905Extraordinary Aid 154,500 154,500Other State Aids 463,525 (428,905) 34,620 261,350 226,730
On-behalf TPAF Post Retirement Medical Contributions (non-budgeted) 554,219 554,219On-behalf TPAF Pension (non-budgeted) 325,683 325,683On-behalf TPAF NCGI Premium (non-budgeted) 23,431 23,431Reimbursed TPAF Social Security Contributions (non-budgeted) 521,112 521,112Total - State Sources 7,393,649 7,393,649 9,199,324 1,805,675Revenues from Federal Sources:
Special Education Medicaid Initiative 43,912 43,912 34,937 (8,975)ARRA - Special Education Medicaid Initiative 5,726 5,726
Total - Federal Sources 43,912 43,912 40,663 (3,249)TOTAL REVENUES 21,226,694 21,226,694 23,056,104 1,829,410
EXPENDITURES:Current Expense:Regular Programs - Instruction
Preschool - Salaries of Teachers 126,801 (4,764) 122,037 122,037Kindergarten - Salaries of Teachers 279,338 88,922 368,260 368,260Grades 1-5 - Salaries of Teachers 1,683,621 208,523 1,892,144 1,892,144Grades 6-8 - Salaries of Teachers 1,146,044 18,501 1,164,545 1,164,545
Regular Programs - Home Instruction:Salaries of Teachers 12,675 2,998 15,673 15,672 1
Regular Programs - Undistributed InstructionOther Salaries for Instruction 130,208 28,004 158,212 158,212Other Purchased Services (400-500 series) 60,000 (8,700) 51,300 44,050 7,250General Supplies 251,936 92,871 344,807 262,361 82,446Textbooks 256,671 (57,643) 199,028 192,772 6,256Other Objects 80,637 17,338 97,975 90,354 7,621TOTAL REGULAR PROGRAMS - INSTRUCTION 4,027,931 386,050 4,413,981 4,310,407 103,574
SPECIAL EDUCATION - INSTRUCTIONLearning and/or Language Disabilities
Salaries of Teachers 284,357 67,013 351,370 351,370Other Salaries for Instruction 58,649 31,490 90,139 90,108 31General Supplies 3,000 100 3,100 2,472 628Textbooks 5,138 900 6,038 4,272 1,766Other Objects 500 400 900 741 159
Total Learning and/or Language Disabilities 351,644 99,903 451,547 448,963 2,584Resource Room/Resource Center:
Salaries of Teachers 554,593 68,095 622,688 622,492 196General Supplies 1,000 2,000 3,000 2,366 634Textbooks 1,000 (1,000)Other Objects 1,000 (1,000)
Total Resource Room/Resource Center 557,593 68,095 625,688 624,858 830Autism:
Salaries of Teachers 50,014 1,026 51,040 51,040Other Salaries for Instruction 70,480 (54,100) 16,380 16,227 153General Supplies 1,000 300 1,300 1,274 26
Total Autism 121,494 (52,774) 68,720 68,541 179Preschool Disabilities- Full-Time:
Salaries of Teachers 161,395 5,357 166,752 166,752Other Salaries for Instruction 64,280 (29,716) 34,564 33,996 568General Supplies 2,500 250 2,750 2,682 68Other Objects 500 (357) 143 143
Total Preschool Disabilities - Full-Time 228,675 (24,466) 204,209 203,430 779TOTAL SPECIAL EDUCATION - INSTRUCTION 1,259,406 90,758 1,350,164 1,345,792 4,372
FAIRVIEW BOARD OF EDUCATIONBudgetary Comparison Schedule
General FundFiscal Year Ended June 30, 2015
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Page 2 of 4
Exhibit C-1
BudgetOriginal Transfers/ Final VarianceBudget Adjustments Budget Actual Final to Actual
FAIRVIEW BOARD OF EDUCATIONBudgetary Comparison Schedule
General FundFiscal Year Ended June 30, 2015
Basic Skills/Remedial - InstructionSalaries of Teachers 417,531 (256,404) 161,127 161,127General Supplies 3,035 (2,500) 535 535Textbooks 600 (553) 47 47Other Objects 500 (500)
Total Basic Skills/Remedial - Instruction 421,666 (259,957) 161,709 161,709Bilingual Education - Instruction
Salaries of Teachers 409,869 30,579 440,448 440,448Other Salaries for Instruction 9,047 17,636 26,683 26,571 112General Supplies 1,500 1,000 2,500 1,273 1,227Textbooks 1,000 10,300 11,300 11,300Other Objects 500 (300) 200 200
Total Bilingual Education - Instruction 421,916 59,215 481,131 468,292 12,839
School-Sponsored Co/Extra Curricular Activities - InstructionSalaries 23,119 (2,743) 20,376 15,632 4,744Purchased Services (300-500 series) 2,500 (2,500)Supplies and Materials 2,700 (2,700)
Total School-Sponsored Cocurricular Activities - Instruction 28,319 (7,943) 20,376 15,632 4,744School-Sponsored Athletics - Instruction
Salaries 15,145 2,193 17,338 17,338Purchased Services (300-500 series) 200 200 75 125Supplies and Materials 2,500 5,550 8,050 8,000 50
Total School-Sponsored Athletics - Instruction 17,645 7,943 25,588 25,413 175TOTAL INSTRUCTION 6,176,883 276,066 6,452,949 6,327,245 125,704
Undistributed Expenditures - Instruction:Tuition to Other LEAs Within the State - Regular 5,101,250 109,695 5,210,945 5,206,456 4,489Tuition to Other LEAs Within the State - Special 1,653,188 (250,392) 1,402,796 1,381,810 20,986Tuition to County Voc. School Dist. - Regular 111,384 (2,736) 108,648 108,648Tuition to County Voc. School Dist. - Special 26,100 27,267 53,367 48,900 4,467Tuition to CSSD & Regional Day Schools 763,730 21,559 785,289 722,172 63,117Tuition to Private Schools for the Handicapped - Within State 339,229 (107,385) 231,844 164,709 67,135
Total Undistributed Expenditures - Instruction: 7,994,881 (201,992) 7,792,889 7,632,695 160,194Undistributed Expend. - Attend. & Social Work
Salaries 166,368 25,845 192,213 192,213Total Undistributed Expend. - Attend. & Social Work 166,368 25,845 192,213 192,213Undist. Expend. - Health Services
Salaries 186,388 (21,524) 164,864 164,476 388Purchased Professional and Technical Services 49,000 3,064 52,064 52,064Supplies and Materials 8,000 9,051 17,051 14,571 2,480
Total Undistributed Expenditures - Health Services 243,388 (9,409) 233,979 231,111 2,868Undist. Expend. - Speech, OT, PT & Related Svcs.
Salaries 214,415 43,298 257,713 257,254 459Purchased Prof. Services-Educational Services 175,000 119,304 294,304 281,058 13,246Supplies and Materials 500 500 47 453
Total Undist. Expend. - Speech, OT, PT, & Related Svcs 389,915 162,602 552,517 538,359 14,158Undist. Expend. - Child Study Teams
Salaries of Other Professional Staff 369,702 5,946 375,648 373,592 2,056Salaries of Secretarial and Clerical Assistants 87,061 4,000 91,061 90,483 578
Total Undist. Expend. - Child Study Teams 456,763 9,946 466,709 464,075 2,634Undist. Expend. - Educational Media Serv./Sch. Library
Salaries 55,104 (54,877) 227 227Supplies and Materials 4,400 800 5,200 3,703 1,497Other Objects 800 (800)
Total Undist. Expend. - Educational Media Serv./Sch. Library 60,304 (54,877) 5,427 3,930 1,497Undist. Expend. - Instructional Staff Training Serv.
Purchased Professional - Educational Services 3,500 3,500 3,500Total Undist. Expend. - Instructional Staff Training Serv. 3,500 3,500 3,500Undist. Expend. - Supp. Serv. - General Administration
Salaries 364,154 (1,220) 362,934 361,490 1,444Legal Services 57,000 (6,417) 50,583 49,227 1,356Audit Fees 78,755 (3,906) 74,849 31,740 43,109Architectural/Engineering Services 26,500 67,449 93,949 91,661 2,288Purchased Technical Services 26,576 (11,994) 14,582 14,582Communications/Telephone 15,310 (3,317) 11,993 10,346 1,647Other Purch Services (400-500 Series) 115,000 13,765 128,765 126,653 2,112General Supplies 22,535 13,541 36,076 35,893 183Misc. Expenditures 22,500 (18,376) 4,124 4,124BOE Membership Dues and Fees 9,800 (524) 9,276 9,254 22
Total Undist. Expend. - Supp. Serv. - General Administration 738,130 49,001 787,131 734,970 52,161
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Page 3 of 4
Exhibit C-1
BudgetOriginal Transfers/ Final VarianceBudget Adjustments Budget Actual Final to Actual
FAIRVIEW BOARD OF EDUCATIONBudgetary Comparison Schedule
General FundFiscal Year Ended June 30, 2015
Undist. Expend. - Support Serv. - School AdministrationSalaries of Principals/Assistant Principals 372,127 (7,283) 364,844 358,014 6,830Salaries of Secretarial and Clerical Assistants 132,764 28,725 161,489 156,526 4,963
Total Undist. Expend. - Support Serv. - School Administration 504,891 21,442 526,333 514,540 11,793Undist. Expend. - Support Serv. - Central Services
Salaries 434,275 8,754 443,029 442,804 225Supplies and Materials 22,000 (662) 21,338 21,008 330Misc. Expenditures 25,000 1,292 26,292 26,292
Total Undist. Expend. - Support Serv. - Central Services 481,275 9,384 490,659 490,104 555Undist. Expend. - Admin Info. Technology
Information TechnologySalaries 37,049 73 37,122 37,121 1Other Purch Services (400-500 Series) 15,000 (9,956) 5,044 3,637 1,407
Total Undist. Expend. - Support Serv. - AdministrativeInformation Technology 52,049 (9,883) 42,166 40,758 1,408
Undist. Expend. - Required Maint. for School Facilities (261)Salaries 62,839 62,839 61,832 1,007Cleaning, Repair and Maintenance Services 55,800 55,800 50,074 5,726General Supplies 27,500 27,500 13,821 13,679
Undist. Expend. - Required Maint. for School Facilities 146,139 146,139 125,727 20,412Undist. Expend. - Oth. Oper. & Maint. of Plant (262)
Salaries 529,360 (61,113) 468,247 442,495 25,752Purchased Prof. And Tech. Services 3,500 3,500 2,488 1,012Cleaning, Repair and Maintenance Services 267,300 (85,500) 181,800 122,905 58,895Rental of Land & Bldg. Oth. Than Lease Pur Agrmt. 160,000 160,000 149,949 10,051Other Purchased Property Services 13,000 700 13,700 13,677 23Miscellaneous Purchased Services 3,800 54,500 58,300 56,865 1,435General Supplies 55,000 5,000 60,000 50,441 9,559Energy (Gas) 18,500 53,485 71,985 54,156 17,829Energy (Electricity) 178,407 1,751 180,158 159,773 20,385Energy (Natural Gas) 75,352 (48,735) 26,617 25,441 1,176
Total Undist. Expend. - Other Oper. & Maint. Of Plant 1,304,219 (79,912) 1,224,307 1,078,190 146,117Undist. Expend. - Security
Salaries 156,638 (50,892) 105,746 92,450 13,296Other Objects 400 469 869 869
Total Undist. Expend. - Security 157,038 (50,423) 106,615 93,319 13,296Undist. Expend. - Student Transportation Services (270)
Salaries for Pupil Trans (Bet. Home & Sch.) - Regular 70,689 (54,342) 16,347 16,316 31Salaries for Pupil Trans (Bet. Home & Sch.) - Sp Ed 84,180 116,380 200,560 191,418 9,142Salaries for Pupil Trans (Other than Bet. Home & Sch. ) 20,000 (3,000) 17,000 136 16,864Cleaning, Repair and Maintenance Services 14,458 8,200 22,658 22,082 576Lease Purchase Payments - School Buses 20,000 41,800 61,800 55,640 6,160Contract Services (Between Home & School)-Vendors 61,800 (49,800) 12,000 12,000Contract Services (Sp. Ed. Students)-Vendors 55,000 (35,338) 19,662 13,548 6,114Miscellaneous Purchased Services - Transportation 22,000 (15,162) 6,838 4,267 2,571General Supplies 2,500 (1,500) 1,000 400 600
Total Undist. Expend. - Student Transportation Services 350,627 7,238 357,865 303,807 54,058UNALLOCATED BENEFITS
Social Security Contributions 160,000 160,000 109,118 50,882T.P.A.F. Contributions - ERIP 84,950 84,950 84,950Other Retirement Contributions-PERS 195,000 (2,216) 192,784 189,082 3,702Unemployment Compensation 44,349 2,216 46,565 46,565Workmen's Compensation 128,473 128,473 107,330 21,143Health Benefits 2,133,873 (155,028) 1,978,845 1,843,902 134,943Other Employee Benefits 133,974 133,974 133,461 513
TOTAL UNALLOCATED BENEFITS 2,880,619 (155,028) 2,725,591 2,429,458 296,133On-behalf TPAF Post Retirement Medical Contributions (non-budgeted) 554,219 (554,219)On-behalf TPAF Pension (non-budgeted) 325,683 (325,683)On-behalf TPAF NCGI Premium (non-budgeted) 23,431 (23,431)Reimbursed TPAF Social Security Contributions (non-budgeted) 521,112 (521,112)
TOTAL ON-BEHALF CONTRIBUTIONS 1,424,445 (1,424,445)
TOTAL PERSONAL SERVICES - EMPLOYEE BENEFITS 2,880,619 (155,028) 2,725,591 3,853,903 (1,128,312)
TOTAL UNDISTRIBUTED EXPENDITURES 15,930,106 (276,066) 15,654,040 16,297,701 (643,661)
TOTAL GENERAL CURRENT EXPENSE 22,106,989 22,106,989 22,624,946 (517,957)
-65-
Page 4 of 4
Exhibit C-1
BudgetOriginal Transfers/ Final VarianceBudget Adjustments Budget Actual Final to Actual
FAIRVIEW BOARD OF EDUCATIONBudgetary Comparison Schedule
General FundFiscal Year Ended June 30, 2015
CAPITAL OUTLAYAssets Acquired Under Capital Leases (non-budgeted)
Various Equipment 124,358 (124,358)Total Assets Acquired Under Capital Leases (non-budgeted) 124,358 (124,358)
TOTAL CAPITAL OUTLAY 124,358 (124,358)
SPECIAL SCHOOLSSummer School - Instruction
Salaries of Teachers 21,000 21,000 21,000Total Summer School - Instruction 21,000 21,000 21,000
Total Post Secondary Programs 21,000 21,000 21,000
TOTAL SPECIAL SCHOOLS 21,000 21,000 21,000
TOTAL EXPENDITURES 22,127,989 22,127,989 22,770,304 (642,315)
Excess (Deficiency) of RevenuesOver (Under) Expenditures (901,295) (901,295) 285,800 1,187,095
Other Financing Sources/(Uses):Capital Leases (non-budgeted) 124,358 (124,358)Operating Transfers Out:
Transfer to Capital Projects (153,481) (1,081,219) (1,234,700) (1,234,700)Transfers to Cover Deficit (Enterprise Fund) (14,738) (14,738) (10,044) (4,694)
Total Other Financing Sources/(Uses): (168,219) (1,081,219) (1,249,438) (1,120,386) (129,052)
Excess (Deficiency) of Revenues and Other Financing SourcesOver (Under) Expenditures and Other Financing Sources (Uses) (1,069,514) (1,081,219) (2,150,733) (834,586) 1,316,147
Fund Balance, July 1 3,111,446 3,111,446 3,111,446
Fund Balance, June 30 2,041,932 (1,081,219) 960,713 2,276,860 1,316,147
Recapitulation of Excess (Deficiency) of Revenues Over (Under) ExpendituresAdjustment for Prior Year Encumbrances (447,942) (447,942) (447,942)Increase in Capital Reserve:
Principal 25,000 (25,000)Increase in Tuition Reserve 400,000 (400,000)Withdrawal from Tuition Reserve - for Tuition Adj. (125,000) (125,000) (125,000)Withdrawal from Capital Reserve (153,481) (1,081,219) (1,234,700) (1,234,700)Budgeted Fund Balance (343,091) (343,091) 548,056 1,741,147
(1,069,514) (1,081,219) (2,150,733) (834,586) 1,316,147
Recapitulation:Restricted Fund Balance:
Excess Surplus - Current Year 145,633 Excess Surplus - Designated for Subsequent Year's Expenditures 184,306 Tuition Reserve - Designated for Subsequent Year's Budget 200,000 Tuition Reserve 400,000 Capital Reserve 42,300
Assigned Fund Balance:Year-end Encumbrances 191,890Designated for Subsequent Year's Expenditures 509,107
Unassigned Fund Balance 603,624Total Fund Balance per Governmental Funds (Budgetary) 2,276,860Recapitulation to Governmental Fund Statement (GAAP):
Less: Last State Aid Payment not Recognized GAAP Basis 696,845Total Fund Balance per Governmental Funds (GAAP) 1,580,015
-66-
Exh
ibit
C-2
FA
IRV
IEW
BO
AR
D O
F E
DU
CA
TIO
NB
ud
geta
ry C
omp
aris
on S
ched
ule
S
pec
ial R
even
ue
Fu
nd
Fis
cal Y
ear
En
ded
Ju
ne
30, 2
015
Bud
get
Ori
gina
lT
rans
fers
/F
inal
Var
ianc
eB
udge
tA
djus
tmen
tsB
udge
tA
ctua
lF
inal
to A
ctua
lR
EV
EN
UE
S:
Loc
al S
ourc
es6,
123
6,12
3
6,
123
-
S
tate
Sou
rces
298,
802
55
,928
35
4,73
0
342,
651
12
,079
F
eder
al S
ourc
es1,
387,
916
8,21
5
1,
396,
131
1,20
9,24
4
18
6,88
7
Tot
al R
even
ues
1,68
6,71
8
70
,266
1,
756,
984
1,55
8,01
8
19
8,96
6
EX
PE
ND
ITU
RE
S:
Inst
ruct
ion
: S
alar
ies
of T
each
ers
753,
235
(3
6,34
6)
716,
889
71
2,81
3
4,07
6
O
ther
Sal
arie
s fo
r In
stru
ctio
n12
,000
-
12,0
00
12,0
00
-
P
urch
ased
Pro
fess
iona
l and
Tec
hnic
al S
ervi
ces
148,
730
41
,474
19
0,20
4
178,
939
11
,265
O
ther
Pur
chas
ed S
ervi
ces
(400
-500
ser
ies)
329,
845
(2
9,91
9)
299,
926
29
9,92
6
-
G
ener
al S
uppl
ies
40,0
77
(4,6
72)
35
,405
27
,842
7,
563
Tex
tboo
ks15
,029
2,
905
17,9
34
17,9
30
4
O
ther
Obj
ects
5,00
0
(5
,000
)
-
-
Tot
al in
stru
ctio
n1,
303,
916
(31,
558)
1,
272,
358
1,24
9,45
0
22
,908
Su
pp
ort
serv
ices
: S
alar
ies
of S
uper
viso
rs o
f In
stru
ctio
n6,
000
-
6,
000
6,00
0
-
Sal
arie
s of
Pro
gram
Dir
ecto
rs27
,000
-
27,0
00
27,0
00
-
S
alar
ies
of O
ther
Pro
fess
iona
l Sta
ff18
,223
23
,797
42
,020
17
,404
24
,616
S
alar
ies
of S
ecre
tari
al a
nd C
leri
cal A
ssis
tant
s5,
524
-
5,
524
5,52
4
-
Oth
er S
alar
ies
14,8
91
19,9
30
34,8
21
17,3
44
17,4
77
Per
sona
l Ser
vice
s -
Em
ploy
ee B
enef
its
162,
097
14
,788
17
6,88
5
62,2
01
114,
684
O
ther
Pur
chas
ed P
rofe
ssio
nal S
ervi
ces
129,
252
20
,200
14
9,45
2
134,
013
15
,439
O
ther
Pur
chas
ed S
ervi
ces
(400
-500
ser
ies)
4,43
9
7,
201
11,6
40
5,50
5
6,
135
Sup
plie
s &
Mat
eria
ls9,
896
5,63
3
15
,529
13
,905
1,
624
Tot
al s
up
por
t se
rvic
es37
7,32
2
91,5
49
468,
871
29
3,49
1
175,
380
Fac
ilit
ies
acq
uis
itio
n a
nd
con
st. s
erv.
: I
nstr
ucti
onal
Equ
ipm
ent
5,48
0
10
,275
15
,755
15
,077
67
8
Tot
al f
acil
itie
s ac
qu
isit
ion
an
d c
onst
. ser
v.5,
480
10,2
75
15,7
55
15,0
77
678
Tot
al E
xpen
ditu
res
1,68
6,71
8
70
,266
1,
756,
984
1,55
8,01
8
19
8,96
6
Exc
ess
(Def
icie
ncy
) of
Rev
enu
es O
ver
(Un
der
)E
xpen
dit
ure
s an
d O
ther
Fin
anci
ng
Sou
rces
(U
ses)
-
-
-
-
-
-67-
Exhibit C-3
Note A - Explanation of Differences between Budgetary Inflows and Outflows and GAAP Revenues and Expenditures
SpecialGeneral Revenue
Fund FundSources/inflows of resourcesActual amounts (budgetary basis) "revenue"
from the budgetary comparison schedule [C-1]&[C-2] 23,056,104 1,558,018
Difference - budget to GAAP:Grant accounting budgetary basis differs from GAAP in that encumbrances are recognized as expenditures, and the related revenue is recognized. Prior Year 28,445 Current Year (6,123)
State aid payment recognized for GAAP statements in thecurrent year, previously recognized for budgetary purposes. 693,549
The last state aid payment is recognized as revenue for budgetary purposes, and differs from GAAP which does not recognize this revenue until the subsequent year when the state recognizes the related expense (GASB 33). (696,845)
Total revenues as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds. [B-2] 23,052,808 1,580,340
Uses/outflows of resourcesActual amounts (budgetary basis) "total outflows" from the [C-1]&[C-2] 22,645,946 1,558,018
budgetary comparison schedule
Differences - budget to GAAPEncumbrances for supplies and equipment ordered but not received are reported in the year the order is placed for budgetary purposes, but in the year the supplies are received for financial reporting purposes. Prior Year 28,445 Current Year (6,123)
Total expenditures as reported on the statement of revenues, expenditures, and changes in fund balances - governmental funds [B-2] 22,645,946 1,580,340
Fiscal Year Ended June 30, 2015
FAIRVIEW BOARD OF EDUCATIONRequired Supplementary Information
Budgetary Comparison Schedule Note to Required Supplementary Information - Part II
-68-
REQUIRED SUPPLEMENTARY
INFORMATION - PART III
Exh
ibit
L-1
Sch
edu
les
of R
equ
ired
Su
pp
lem
enta
ry I
nfo
rmat
ion
Sch
edu
le o
f D
istr
ict'
s S
har
e of
Net
Pen
sion
Lia
bil
ity
- P
ER
SLa
st 1
0 F
isca
l Yea
rs*
2015
Dis
tric
ts p
ropo
rtio
n of
the
net p
ensi
onli
abil
ity
(ass
et)
0.02
0945
2961
%
Dis
tric
t's p
ropo
rtio
nate
sha
re o
f th
e ne
t pe
nsio
n li
abil
ity
(ass
et)
3,92
1,53
2$
Dis
tric
t's c
over
ed p
ayro
ll -
PE
RS
1,50
0,06
5$
Dis
tric
t's p
ropo
rtio
nate
sha
re o
f th
e ne
tpe
nsio
n li
abil
ity
(ass
et)
as a
per
cent
age
of it
s co
vere
d pa
yrol
l26
1.42
%
Pla
n fi
duci
ary
net p
osit
ion
as a
perc
enta
ge o
f th
e to
tal p
ensi
onli
abil
ity
52.0
8%
* G
AS
B r
equi
res
that
ten
year
s of
info
rmat
ion
be p
rese
nted
. H
owev
er, s
ince
fis
cal y
ear
2015
was
the
firs
t yea
r of
GA
SB
68
impl
emen
tati
on te
n ye
ars
is n
ot p
rese
nted
. E
ach
year
ther
eaft
er, a
n ad
diti
onal
yea
r w
ill b
e in
clud
ed u
ntil
ten
year
s of
dat
a is
pre
sent
ed.
FA
IRV
IEW
BO
AR
D O
F E
DU
CA
TIO
N
-69-
Exh
ibit
L-2
Sch
edu
les
of R
equ
ired
Su
pp
lem
enta
ry I
nfo
rmat
ion
Sch
edu
le o
f D
istr
ict'
s C
ontr
ibu
tion
s -
PE
RS
Last
10
Fis
cal Y
ears
*
2015
Con
trac
tual
ly r
equi
red
cont
ribu
tion
172,
670.
00$
Con
trib
utio
ns in
rel
atio
n to
the
cont
ract
uall
y re
quir
ed c
ontr
ibut
ion
(172
,670
.00)
$
Con
trib
utio
n de
fici
ency
(ex
cess
)-
$
Dis
tric
t's c
over
ed p
ayro
ll -
PE
RS
1,50
0,06
5$
Con
trib
utio
ns a
s a
perc
enta
ge o
f 11
.51%
cove
red
payr
oll
* G
AS
B r
equi
res
that
ten
year
s of
info
rmat
ion
be p
rese
nted
. H
owev
er, s
ince
fis
cal y
ear
2015
was
the
firs
t yea
r of
GA
SB
68
impl
emen
tati
on te
n ye
ars
is n
ot p
rese
nted
. E
ach
year
ther
eaft
er, a
n ad
diti
onal
yea
r w
ill b
e in
clud
ed u
ntil
ten
year
s of
dat
a is
pre
sent
ed.
FA
IRV
IEW
BO
AR
D O
F E
DU
CA
TIO
N
-70-
Exh
ibit
L-3
Sch
edu
les
of R
equ
ired
Su
pp
lem
enta
ry I
nfo
rmat
ion
Sch
edu
le o
f D
istr
ict'
s S
har
e of
Net
Pen
sion
Lia
bil
ity
- T
PA
FLa
st 1
0 F
isca
l Yea
rs*
2015
Dis
tric
ts p
ropo
rtio
n of
the
net p
ensi
onli
abil
ity
(ass
et)
0.06
1570
8528
%
Dis
tric
t's p
ropo
rtio
nate
sha
re o
f th
e ne
t pe
nsio
n li
abil
ity
(ass
et)
-$
Sta
te's
pro
port
iona
te s
hare
of
the
net
pens
ion
liab
ilit
y A
ssoc
iate
d w
ith
the
Dis
tric
t (as
set)
32,9
07,6
17$
Dis
tric
t's c
over
ed p
ayro
ll -
TP
AF
7,23
8,33
1$
Dis
tric
t's p
ropo
rtio
nate
sha
re o
f th
e ne
tpe
nsio
n li
abil
ity
(ass
et)
as a
per
cent
age
of it
s co
vere
d pa
yrol
l0.
00%
Pla
n fi
duci
ary
net p
osit
ion
as a
perc
enta
ge o
f th
e to
tal p
ensi
onli
abil
ity
33.6
4%
* G
AS
B r
equi
res
that
ten
year
s of
info
rmat
ion
be p
rese
nted
. H
owev
er, s
ince
fis
cal y
ear
2015
was
the
firs
t yea
r of
GA
SB
68
impl
emen
tati
on te
n ye
ars
is n
ot p
rese
nted
. E
ach
year
ther
eaft
er, a
n ad
diti
onal
yea
r w
ill b
e in
clud
ed u
ntil
ten
year
s of
dat
a is
pre
sent
ed.
FA
IRV
IEW
BO
AR
D O
F E
DU
CA
TIO
N
-71-
Exhibit L-4
Note to Required Schedules of Supplementary Information - Part III
PUBLIC EMPLOYEES RETIREMENT SYSTEM (PERS)
Change in benefit terms
None
Change in assumptions
The calculation of the discount rate used to measure the total pension liability is dependent upon the long·term expected rate of return, and the municipal bond index rate. There was a change in the municipal bond index rate from the prior measurement date (4.63%) to the current measurement date (4.29%), resulting in a change in the discount rate from 5.55% to 5.39%. This change in the discount rate is considered to be a change in actuarial assumptions under GASBS No. 68.
TEACHERS PENSION AND ANNUITY FUND (TPAF)
Change in benefit terms
Change in assumptions
The calculation of the discount rate used to measure the total pension liability is dependent upon the long·term expected rate of return, and the municipal bond index rate. There was a change in the municipal bond index rate from the prior measurement date (4.63%) to the current measurement date (4.29%), resulting in a change in the discount rate from 4.95% to 4.68%. This change in the discount rate is considered to be a change in actuarial assumptions under GASBS No. 68.
FAIRVIEW BOARD OF EDUCATION
Fiscal Year Ended June 30, 2015
-72-
SPECIAL REVENUE FUND
Exh
ibit
E-1
FA
IRV
IEW
BO
AR
D O
F E
DU
CA
TIO
NS
pec
ial R
even
ue
Fu
nd
Com
bin
ing
Sch
edu
le o
f P
rogr
am R
even
ues
an
d E
xpen
dit
ure
s -
Bu
dge
tary
Bas
isF
isca
l Yea
r E
nd
ed J
un
e 30
, 201
5
Tot
alB
rou
ght
IDE
AT
itle
II,
Par
t A
For
war
dN
JSB
Saf
ety
IDE
AP
art
- B
NC
LB
Tra
inin
g &
Tot
als
(Ex.
E-1
a)G
ran
tP
art
- B
Pre
sch
ool
Tit
le I
Rec
ruit
ing
2015
RE
VE
NU
ES
L
ocal
Sou
rces
-
6,12
3
6,12
3
S
tate
Sou
rces
342,
651
34
2,65
1
F
eder
al S
ourc
es50
,156
377,
254
7,
919
71
8,87
9
55,0
36
1,
209,
244
T
otal
Rev
enu
es39
2,80
7
6,12
3
377,
254
7,
919
71
8,87
9
55,0
36
1,
558,
018
EX
PE
ND
ITU
RE
S:
Inst
ruct
ion
: S
alar
ies
of T
each
ers
71,2
65
64
1,54
8
712,
813
O
ther
Sal
arie
s fo
r In
stru
ctio
n12
,000
12,0
00
P
urch
ased
Pro
fess
iona
l and
Tec
hnic
al S
ervi
ces
178,
939
17
8,93
9
Oth
er P
urch
ased
Ser
vice
s (4
00-5
00 s
erie
s)-
29
2,00
7
7,91
9
299,
926
G
ener
al S
uppl
ies
17,2
51
3,
360
7,
231
27
,842
Tex
tboo
ks17
,930
17,9
30
Tot
al in
stru
ctio
n29
7,38
5
-
295,
367
7,
919
64
8,77
9
-
1,24
9,45
0
Su
pp
ort
serv
ices
: S
alar
ies
of S
uper
viso
rs o
f In
stru
ctio
n6,
000
6,
000
S
alar
ies
of P
rogr
am D
irec
tors
27,0
00
27
,000
Sal
arie
s of
Oth
er P
rofe
ssio
nal S
taff
-
17,4
04
17
,404
Sal
arie
s of
Sec
reta
rial
and
Cle
rica
l Ass
ista
nts
5,52
4
5,52
4
Oth
er S
alar
ies
-
17,3
44
17
,344
Per
sona
l Ser
vice
s -
Em
ploy
ee B
enef
its
10,4
12
2,
612
49
,177
62,2
01
P
urch
ased
Pro
fess
iona
l - E
duca
tion
al S
ervi
ces
4,59
5
4,59
5
Oth
er P
urch
ased
Pro
fess
iona
l Ser
vice
s28
,550
43,5
27
11
,000
50,9
36
13
4,01
3
Oth
er P
urch
ased
Ser
vice
s (4
00-5
00 s
erie
s)40
5
1,
000
4,
100
5,
505
S
uppl
ies
& M
ater
ials
3,98
2
9,92
3
13,9
05
Tot
al s
up
por
t se
rvic
es86
,468
-
81,8
87
-
70
,100
55,0
36
29
3,49
1
Fac
ilit
ies
acq
uis
itio
n a
nd
con
st. s
erv.
: I
nstr
ucti
onal
Equ
ipm
ent
8,95
4
6,12
3
15,0
77
Tot
al f
acil
itie
s ac
qu
isit
ion
an
d c
onst
. ser
v.8,
954
6,
123
-
-
-
-
15
,077
Tot
al E
xpen
dit
ure
s39
2,80
7
6,12
3
377,
254
7,
919
71
8,87
9
55,0
36
1,
558,
018
Exc
ess
(Def
icie
ncy
) of
Rev
enu
es O
ver
(Un
der
)
Exp
end
itu
res
and
Oth
er F
inan
cin
g S
ourc
es (
Use
s)-
-
-
-
-
-
-
-73-
Exh
ibit
E-1
aF
AIR
VIE
W B
OA
RD
OF
ED
UC
AT
ION
Sp
ecia
l Rev
enu
e F
un
dC
omb
inin
g S
ched
ule
of
Pro
gram
Rev
enu
es a
nd
Exp
end
itu
res
- B
ud
geta
ry B
asis
Fis
cal Y
ear
En
ded
Ju
ne
30, 2
015
Tot
alB
rou
ght
NC
LB
Ch
apte
r 19
4T
otal
For
war
dN
CL
BT
itle
III
Non
pu
bli
cN
onp
ub
lic
Non
pu
bli
cC
arri
ed(E
x. E
-1b
)T
itle
III
Imm
igra
nt
Nu
rsin
gT
ech
nol
ogy
Tex
tboo
kF
orw
ard
RE
VE
NU
ES
L
ocal
Sou
rces
-
-
S
tate
Sou
rces
287,
217
28
,550
8,95
4
17
,930
34
2,65
1
F
eder
al S
ourc
es-
51
,799
(1,6
43)
50,1
56
T
otal
Rev
enu
es28
7,21
7
51,7
99
(1
,643
)
28
,550
8,95
4
17
,930
39
2,80
7
EX
PE
ND
ITU
RE
S:
Inst
ruct
ion
: S
alar
ies
of T
each
ers
44,9
85
26
,280
71,2
65
O
ther
Sal
arie
s fo
r In
stru
ctio
n12
,000
12,0
00
P
urch
ased
Pro
fess
iona
l and
Tec
hnic
al S
ervi
ces
178,
939
17
8,93
9
Oth
er P
urch
ased
Ser
vice
s (4
00-5
00 s
erie
s)-
-
G
ener
al S
uppl
ies
4,36
8
14,5
12
(1
,629
)
17
,251
Tex
tboo
ks-
17
,930
17
,930
Oth
er O
bjec
ts-
-
Tot
al in
stru
ctio
n24
0,29
2
40,7
92
(1
,629
)
-
-
17
,930
29
7,38
5
Su
pp
ort
serv
ices
: S
alar
ies
of S
uper
viso
rs o
f In
stru
ctio
n6,
000
6,
000
S
alar
ies
of P
rogr
am D
irec
tors
27,0
00
27
,000
Sal
arie
s of
Oth
er P
rofe
ssio
nal S
taff
-
-
Sal
arie
s of
Sec
reta
rial
and
Cle
rica
l Ass
ista
nts
5,52
4
5,52
4
Oth
er S
alar
ies
-
-
Per
sona
l Ser
vice
s -
Em
ploy
ee B
enef
its
8,40
1
2,01
1
10,4
12
P
urch
ased
Pro
fess
iona
l - E
duca
tion
al S
ervi
ces
-
4,59
5
4,59
5
Oth
er P
urch
ased
Pro
fess
iona
l Ser
vice
s-
28
,550
28,5
50
O
ther
Pur
chas
ed S
ervi
ces
(400
-500
ser
ies)
-
405
405
Sup
plie
s &
Mat
eria
ls-
3,
996
(1
4)
3,
982
Tot
al s
up
por
t se
rvic
es46
,925
11,0
07
(1
4)
28
,550
-
-
86,4
68
Fac
ilit
ies
acq
uis
itio
n a
nd
con
st. s
erv.
: I
nstr
ucti
onal
Equ
ipm
ent
-
8,95
4
8,
954
Tot
al f
acil
itie
s ac
qu
isit
ion
an
d c
onst
. ser
v.-
-
-
-
8,
954
-
8,95
4
Tot
al E
xpen
dit
ure
s28
7,21
7
51,7
99
(1
,643
)
28
,550
8,95
4
17
,930
39
2,80
7
Exc
ess
(Def
icie
ncy
) of
Rev
enu
es O
ver
(Un
der
)
Exp
end
itu
res
and
Oth
er F
inan
cin
g S
ourc
es (
Use
s)-
-
-
-
-
-
-
-74-
Exh
ibit
E-1
bF
AIR
VIE
W B
OA
RD
OF
ED
UC
AT
ION
Sp
ecia
l Rev
enu
e F
un
dC
omb
inin
g S
ched
ule
of
Pro
gram
Rev
enu
es a
nd
Exp
end
itu
res
- B
ud
geta
ry B
asis
Fis
cal Y
ear
En
ded
Ju
ne
30, 2
015
Ch
apte
r 19
2C
hap
ter
193
Ch
apte
r 19
3C
hap
ter
193
Pre
sch
ool
Tot
alC
omp
esat
ory
Ch
apte
r 19
2S
up
ple
men
tal
Exa
m &
Cor
rect
ive
Ed
uca
tion
Car
ried
Ed
uca
tion
ES
LIn
stru
ctio
nC
lass
ific
atio
nS
pee
chA
idF
orw
ard
RE
VE
NU
ES
L
ocal
Sou
rces
-
S
tate
Sou
rces
116,
185
12
,150
9,
730
16,7
54
24,1
20
108,
278
28
7,21
7
F
eder
al S
ourc
es-
T
otal
Rev
enu
es11
6,18
5
12,1
50
9,73
0
16
,754
24
,120
10
8,27
8
287,
217
EX
PE
ND
ITU
RE
S:
Inst
ruct
ion
: S
alar
ies
of T
each
ers
44,9
85
44,9
85
Oth
er S
alar
ies
for
Inst
ruct
ion
12,0
00
12,0
00
Pur
chas
ed P
rofe
ssio
nal a
nd T
echn
ical
Ser
vice
s11
6,18
5
12,1
50
9,73
0
16
,754
24
,120
17
8,93
9
Oth
er P
urch
ased
Ser
vice
s (4
00-5
00 s
erie
s)-
G
ener
al S
uppl
ies
4,36
8
4,
368
Tex
tboo
ks-
O
ther
Obj
ects
-
Tot
al in
stru
ctio
n11
6,18
5
12,1
50
9,73
0
16
,754
24
,120
61
,353
24
0,29
2
Su
pp
ort
serv
ices
: S
alar
ies
of S
uper
viso
rs o
f In
stru
ctio
n6,
000
6,00
0
S
alar
ies
of P
rogr
am D
irec
tors
27,0
00
27,0
00
Sal
arie
s of
Oth
er P
rofe
ssio
nal S
taff
-
Sal
arie
s of
Sec
reta
rial
and
Cle
rica
l Ass
ista
nts
5,52
4
5,
524
Oth
er S
alar
ies
-
Per
sona
l Ser
vice
s -
Em
ploy
ee B
enef
its
8,40
1
8,
401
Pur
chas
ed P
rofe
ssio
nal -
Edu
cati
onal
Ser
vice
s-
O
ther
Pur
chas
ed P
rofe
ssio
nal S
ervi
ces
-
Oth
er P
urch
ased
Ser
vice
s (4
00-5
00 s
erie
s)-
S
uppl
ies
& M
ater
ials
-
Tot
al s
up
por
t se
rvic
es-
-
-
-
-
46
,925
46
,925
Fac
ilit
ies
acq
uis
itio
n a
nd
con
st. s
erv.
: I
nstr
ucti
onal
Equ
ipm
ent
-
Tot
al f
acil
itie
s ac
qu
isit
ion
an
d c
onst
. ser
v.-
-
-
-
-
-
-
Tot
al E
xpen
dit
ure
s11
6,18
5
12,1
50
9,73
0
16
,754
24
,120
10
8,27
8
287,
217
Exc
ess
(Def
icie
ncy
) of
Rev
enu
es O
ver
(Un
der
)
Exp
end
itu
res
and
Oth
er F
inan
cin
g S
ourc
es (
Use
s )-
-
-
-
-
-
-
-75-
E-2
District Wide Total
Budget Actual VarianceExpenditures:
Instruction:Salaries of teachers 44,985 44,985Other salaries for instruction 12,000 12,000General supplies 4,500 4,368 132
Total instruction 61,485 61,353 132
Support services:Salaries of Supervisors of Instruction 6,000 6,000Salaries of Program Directors 27,000 27,000Salaries of Secr. and Clerical Assistants 5,524 5,524Personal Services - Employee Benefits 8,401 8,401
Total support services 46,925 46,925
Total expenditures 108,410 108,278 132
Summary of Location Totals
Total revised 2014-15 Preschool Education Aid 108,410Add: Actual Carryover (June 30, 2014)
Add: Budgeted Transfer from the General Fund 2014-15Total Preschool Education Aid Funds Available for 2014-15 Budget 108,410
Less: 2013-14 Budgeted Preschool Education Aidprior year budgeted carryover) 108,410
Available & Unbudgeted Preschool Education Aid Funds as of June 30, 2015
Add: June 30, 2015 Unexpended Preschool Education Aid 1322014-15 Carryover - Preschool Education Aid/Preschool 132
2014-15 Preschool Education Aid CarryoverBudgeted for Preschool Programs 2015-16
Fiscal Year Ended June 30, 2015
Schedule of Preschool Education AidBudgetary Basis
FAIRVIEW BOARD OF EDUCATIONSpecial Revenue Fund
-76-
CAPITAL PROJECTS FUND
Exhibit F-1
FAIRVIEW BOARD OF EDUCATIONCapital Projects Fund
Summary Schedule of Revenues, Expenditures, and Changesin Fund Balance-Budgetary Basis
Fiscal Year Ended June 30, 2015
Revenues and Other Financing SourcesState Sources - SCC Grant 213,958 Bond proceeds and transfers - Transfers from Capital Reserve 291,300 Transfers from Capital Outlay 943,400
1,448,658
Expenditures and Other Financing UsesPurchased professional and technical services - Land and improvements - Construction services 691,353 Equipment purchases -
Total expenditures 691,353
Excess (deficiency) of revenues over (under) expenditures 757,305
Net change in fund balance 757,305
Fund balance - beginning
Fund balance - ending 757,305
-77-
Exhibit F-1a
FAIRVIEW BOARD OF EDUCATIONCapital Projects Fund
Schedule of Project Revenues, Expenditures, Project Balances and Project Status-Budgetary BasisLincoln School Bathroom Renovations
Fiscal Year Ended June 30, 2015
RevisedAuthorized
Prior Periods Current Year Totals CostRevenues and Other Financing Sources
State Sources - SCC Grant - Bond proceeds and transfers - Transfers from Capital Reserve - Transfers from Capital Outlay 399,000 399,000 399,000
- 399,000 399,000 399,000
Expenditures and Other Financing UsesPurchased professional and technical services - Land and improvements - Construction services - 399,000 Equipment purchases -
- - - 399,000
Excess (deficiency) of revenuesover (under) expenditures - 399,000 399,000 -
Additional project information:Project number 1470-060-15-1000Grant Date 4/28/2015Bond authorization date N/ABonds authorized N/ABonds issued N/AOriginal authorization cost 571,908 Additional authorized cost (172,908) Revised authorized cost 399,000
Percentage increase over originalauthorized cost (0.30)
Percentage completion 0%Original target completion date 8/31/2015Revised target completion date
-78-
Exhibit F-1b
FAIRVIEW BOARD OF EDUCATIONCapital Projects Fund
Schedule of Project Revenues, Expenditures, Project Balances and Project Status-Budgetary BasisLincoln School Window Replacement
Fiscal Year Ended June 30, 2015
RevisedAuthorized
Prior Periods Current Year Totals CostRevenues and Other Financing Sources
State Sources - SCC Grant 213,958 213,958 213,958 Bond proceeds and transfers - Transfers from Capital Reserve - Transfers from Capital Outlay 544,400 544,400 544,400
- 758,358 758,358 758,358
Expenditures and Other Financing UsesPurchased professional and technical services - Land and improvements - Construction services 444,163 444,163 758,358 Equipment purchases -
- 444,163 444,163 758,358
Excess (deficiency) of revenuesover (under) expenditures - 314,195 314,195 -
Additional project information:Project number 1470-060-14-1001Grant Date 1/6/2014Bond authorization date N/ABonds authorized N/ABonds issued N/AOriginal authorization cost 367,439 Additional authorized cost 390,919 Revised authorized cost 758,358
Percentage increase over originalauthorized cost 1.06
Percentage completion 59%Original target completion date 8/31/2015Revised target completion date
-79-
Exhibit F-1c
FAIRVIEW BOARD OF EDUCATIONCapital Projects Fund
Schedule of Project Revenues, Expenditures, Project Balances and Project Status-Budgetary BasisLincoln School Roof Replacement
Fiscal Year Ended June 30, 2015
RevisedAuthorized
Prior Periods Current Year Totals CostRevenues and Other Financing Sources
State Sources - SCC Grant - Bond proceeds and transfers - Transfers from Capital Reserve 291,300 291,300 291,300 Transfers from Capital Outlay -
- 291,300 291,300 291,300
Expenditures and Other Financing UsesPurchased professional and technical services - Land and improvements - Construction services 247,190 247,190 291,300 Equipment purchases -
- 247,190 247,190 291,300
Excess (deficiency) of revenuesover (under) expenditures - 44,110 44,110 -
Additional project information:Project number N/AGrant Date N/ABond authorization date N/ABonds authorized N/ABonds issued N/AOriginal authorization cost 291,300 Additional authorized costRevised authorized cost 291,300
Percentage increase over originalauthorized cost -
Percentage completion 85%Original target completion date 8/31/2015Revised target completion date
-80-
Exh
ibit
F-2
FA
IRV
IEW
BO
AR
D O
F E
DU
CA
TIO
NC
apit
al P
roje
cts
Fu
nd
Su
mm
ary
Sta
tem
ent
of P
roje
ct E
xpen
dit
ure
sF
isca
l Yea
r E
nd
ed J
un
e 30
, 201
5
Un
exp
end
edP
rior
Cu
rren
tB
alan
ceD
ate
Ap
pro
pri
atio
ns
Yea
rsY
ear
Jun
e 30
, 201
5
Lin
coln
Sch
ool B
athr
oom
Ren
ovat
ions
2014
-201
539
9,00
0
399,
000
Lin
coln
Sch
ool W
indo
w R
epla
cem
ent
2014
-201
575
8,35
8
444,
163
314,
195
Lin
coln
Sch
ool R
oof
Rep
lace
men
t20
14-2
015
291,
300
24
7,19
0
44
,110
1,44
8,65
8
-
69
1,35
3
75
7,30
5
Pro
ject
Tit
le/I
ssu
e
Exp
end
itu
res
to D
ate
-81-
PROPRIETARY FUNDS
Exhibit G-1
FoodService
Program Totals
ASSETS
Current assets:Cash and cash equivalents 28,413 28,413 Interfund receivable 353 Accounts receivable:
State 652 652 Federal 29,461 29,461
Total current assets 58,879 58,526
Noncurrent assets:Capital assets: Equipment 63,070 63,070 Less accumulated depreciation (49,688) (49,688) Total capital assets (net of accumulated depreciation) 13,382 13,382 Total assets 72,261 71,908
NET POSITION
Net Investment in Capital Assets 13,382 13,382 Unrestricted 58,879 58,879 Total net position 72,261 72,261
FAIRVIEW BOARD OF EDUCATIONCombining Statement of Net Position
Enterprise FundsJune 30, 2015
-82-
Exhibit G-2
FoodService
Program TotalsOperating revenues:
Charges for services: Daily sales 10,005 10,005 Total operating revenues 10,005 10,005
Operating expenses:Cost of food 325,538 325,538 Depreciation 4,132 4,132 Total Operating Expenses 329,670 329,670 Operating income (loss) (319,665) (319,665)
Nonoperating revenues (expenses):State sources: School lunch program 5,365 5,365 Federal sources: School lunch program 278,178 278,178 School breakfast program 33,547 33,547 Interest Income 43 43 Total nonoperating revenues (expenses) 317,133 317,133 Income (loss) before contributions & transfers (2,532) (2,532)
Other financing sources/(uses):Transfer In 10,044 10,044 Change in net position 7,512 7,512
Total net position—beginning 64,749 64,749 Total net position—ending 72,261 72,261
FAIRVIEW BOARD OF EDUCATIONCombining Statement of Revenues, Expenses, and Changes in Fund Net Position
Enterprise FundsFiscal Year Ended June 30, 2015
-83-
Exhibit G-3
FAIRVIEW BOARD OF EDUCATIONCombining Statement of Cash Flows
Enterprise FundsFiscal Year Ended June 30, 2015
FoodService
Program Totals
CASH FLOWS FROM OPERATING ACTIVITIESReceipts from customers 10,005 10,005 Payments to suppliers (325,538) (325,538) Net cash provided by (used for) operating activities (315,533) (315,533)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIESState Sources 5,380 5,380 Federal Sources 320,676 320,676 Transfer In 10,044 10,044 Net cash provided by (used for) non-capital financing activities 336,100 336,100
CASH FLOWS FROM INVESTING ACTIVITIESInterest and dividends 43 43 Net cash provided by (used for) investing activities 43 43 Net increase (decrease) in cash and cash equivalents 20,610 20,610
Balances—beginning of year 7,803 7,803 Balances—end of year 28,413 28,413
Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) (319,665) (319,665) Adjustments to reconcile operating income (loss) to net cash provided by Depreciation and net amortization 4,132 4,132 Total adjustments 4,132 4,132 Net cash provided by (used for) operating activities (315,533) (315,533)
-84-
FIDUCIARY FUND
Exhibit H-1
FAIRVIEW BOARD OF EDUCATIONCombining Statement of Fiduciary Net Position
Fiduciary FundsJune 30, 2015
Agency Funds
ASSETSCash and cash equivalents 275,122 Total assets 275,122
LIABILITIES Payable to student groups 17,725 Payroll deductions and withholdings 255,462 Region VI Fund 1,935 Total liabilities 275,122
-85-
Exhibit H-3
FAIRVIEW BOARD OF EDUCATIONStudent Activity Agency Fund
Schedule of Receipts and DisbursementsFiscal Year Ended June 30, 2015
Balance Cash Cash BalanceJuly 1, 2014 Receipts Disbursed June 30, 2015
Elementary Schools:Lincoln School 21,341 48,264 51,880 17,725
Total Elementary Schools 21,341 48,264 51,880 17,725
Total All Schools 21,341 48,264 51,880 17,725
-86-
Exhibit H-4
FAIRVIEW BOARD OF EDUCATIONPayroll Agency Fund
Schedule of Receipts and DisbursementsFiscal Year Ended June 30, 2015
Balance Cash Cash BalanceJuly 1, 2014 Receipts Disbursed June 30, 2015
Net Payroll 135,979 9,765,709 9,737,471 164,217 Payroll Deductions and Withholdings 166,016 5,460,079 5,534,850 91,245
301,995 15,225,788 15,272,321 255,462
-87-
Exhibit H-5
FAIRVIEW BOARD OF EDUCATIONRegion VI Agency Fund
Schedule of Receipts and DisbursementsFiscal Year Ended June 30, 2015
Balance Cash BalanceJuly 1, 2014 Receipts June 30, 2015
Region VI Fund 2 1,933 1,935
Total Region VI Fund 2 1,933 1,935
-88-
LONG-TERM DEBT
Exh
ibit
I-1
Bal
ance
,B
alan
ce,
Dat
e of
Am
ount
of
Ann
ual M
atur
itie
sIn
tere
stJu
ly 1
,Ju
ne 3
0,Is
sue
Issu
eIs
sue
Dat
eA
mou
ntR
ate
2014
Ret
ired
2015
Pen
sion
Ref
undi
ng B
onds
Oct
. 1, 2
003
800,
000
10/1
/201
570
,000
5.75
%29
5,00
070
,000
225,
000
10/1
/201
675
,000
5.75
%10
/1/2
017
80,0
005.
75%
$29
5,00
070
,000
225,
000
FA
IRV
IEW
BO
AR
D O
F E
DU
CA
TIO
NG
ener
al L
ong-
Ter
m D
ebt
Acc
oun
t G
rou
pS
ched
ule
of
Ser
ial B
ond
sF
isca
l Yea
r E
nd
ed J
un
e 30
, 201
5
-89-
Exh
ibit
I-2
Bal
ance
,D
ate
ofA
mou
nt o
fP
rinc
ipal
Pay
men
tIn
tere
stJu
ne 3
0,Is
sue
Lea
seL
ease
Dat
eA
mou
ntR
ate
Issu
edR
etir
ed20
15
100
App
le iP
ads
& A
cces
sori
es9/
10/2
014
53,3
057/
15/2
015
1,34
711
.4%
$53
,305
10,3
3042
,975
8/15
/201
51,
360
11.4
%9/
15/2
015
1,37
311
.4%
10/1
5/20
151,
386
11.4
%11
/15/
2015
1,39
911
.4%
12/1
5/20
151,
412
11.4
%1/
15/2
016
1,42
511
.4%
2/15
/201
61,
439
11.4
%3/
15/2
016
1,45
311
.4%
4/15
/201
61,
467
11.4
%5/
15/2
016
1,48
011
.4%
6/15
/201
61,
495
11.4
%7/
15/2
016
1,50
911
.4%
8/15
/201
61,
523
11.4
%9/
15/2
016
1,53
811
.4%
10/1
5/20
161,
552
11.4
%11
/15/
2016
1,56
711
.4%
12/1
5/20
161,
582
11.4
%1/
15/2
017
1,59
711
.4%
2/15
/201
71,
612
11.4
%3/
15/2
017
1,62
711
.4%
4/15
/201
71,
643
11.4
%5/
15/2
017
1,65
811
.4%
6/15
/201
71,
674
11.4
%7/
15/2
017
1,69
011
.4%
8/15
/201
71,
706
11.4
%9/
15/2
017
1,72
211
.4%
10/1
5/20
171,
739
11.4
%
FA
IRV
IEW
BO
AR
D O
F E
DU
CA
TIO
NG
ener
al L
ong-
Ter
m D
ebt
Acc
oun
t G
rou
pS
ched
ule
of
Cap
ital
Lea
ses
Pay
able
Fis
cal Y
ear
En
ded
Ju
ne
30, 2
015
-90-
Exh
ibit
I-2
Bal
ance
,D
ate
ofA
mou
nt o
fP
rinc
ipal
Pay
men
tIn
tere
stJu
ne 3
0,Is
sue
Lea
seL
ease
Dat
eA
mou
ntR
ate
Issu
edR
etir
ed20
15
FA
IRV
IEW
BO
AR
D O
F E
DU
CA
TIO
NG
ener
al L
ong-
Ter
m D
ebt
Acc
oun
t G
rou
pS
ched
ule
of
Cap
ital
Lea
ses
Pay
able
Fis
cal Y
ear
En
ded
Ju
ne
30, 2
015
40 A
pple
iPad
s &
Acc
esso
ries
11/2
4/20
1422
,783
7/15
/201
556
610
.42%
22,7
832,
756
20,0
278/
15/2
015
571
10.4
2%9/
15/2
015
576
10.4
2%10
/15/
2015
581
10.4
2%11
/15/
2015
586
10.4
2%12
/15/
2015
591
10.4
2%1/
15/2
016
596
10.4
2%2/
15/2
016
601
10.4
2%3/
15/2
016
606
10.4
2%4/
15/2
016
611
10.4
2%5/
15/2
016
617
10.4
2%6/
15/2
016
622
10.4
2%7/
15/2
016
628
10.4
2%8/
15/2
016
633
10.4
2%9/
15/2
016
639
10.4
2%10
/15/
2016
644
10.4
2%11
/15/
2016
650
10.4
2%12
/15/
2016
655
10.4
2%1/
15/2
017
661
10.4
2%2/
15/2
017
667
10.4
2%3/
15/2
017
673
10.4
2%4/
15/2
017
678
10.4
2%5/
15/2
017
684
10.4
2%6/
15/2
017
690
10.4
2%7/
15/2
017
696
10.4
2%8/
15/2
017
702
10.4
2%9/
15/2
017
708
10.4
2%10
/15/
2017
714
10.4
2%11
/15/
2017
721
10.4
2%12
/15/
2017
727
10.4
2%1/
15/2
018
733
10.4
2%
-91-
Exh
ibit
I-2
Bal
ance
,D
ate
ofA
mou
nt o
fP
rinc
ipal
Pay
men
tIn
tere
stJu
ne 3
0,Is
sue
Lea
seL
ease
Dat
eA
mou
ntR
ate
Issu
edR
etir
ed20
15
FA
IRV
IEW
BO
AR
D O
F E
DU
CA
TIO
NG
ener
al L
ong-
Ter
m D
ebt
Acc
oun
t G
rou
pS
ched
ule
of
Cap
ital
Lea
ses
Pay
able
Fis
cal Y
ear
En
ded
Ju
ne
30, 2
015
iPad
Acc
esso
ries
12/1
9/20
1437
,008
7/15
/201
592
09.
64%
37,0
083,
606
33,4
028/
15/2
015
927
9.64
%9/
15/2
015
934
9.64
%10
/15/
2015
942
9.64
%11
/15/
2015
950
9.64
%12
/15/
2015
957
9.64
%1/
15/2
016
965
9.64
%2/
15/2
016
973
9.64
%3/
15/2
016
980
9.64
%4/
15/2
016
988
9.64
%5/
15/2
016
996
9.64
%6/
15/2
016
1,00
49.
64%
7/15
/201
61,
012
9.64
%8/
15/2
016
1,02
09.
64%
9/15
/201
61,
029
9.64
%10
/15/
2016
1,03
79.
64%
11/1
5/20
161,
045
9.64
%12
/15/
2016
1,05
49.
64%
1/15
/201
71,
062
9.64
%2/
15/2
017
1,07
19.
64%
3/15
/201
71,
079
9.64
%4/
15/2
017
1,08
89.
64%
5/15
/201
71,
097
9.64
%6/
15/2
017
1,10
59.
64%
7/15
/201
71,
114
9.64
%8/
15/2
017
1,12
39.
64%
9/15
/201
71,
132
9.64
%10
/15/
2017
1,14
19.
64%
11/1
5/20
171,
150
9.64
%12
/15/
2017
1,16
09.
64%
1/15
/201
81,
169
9.64
%2/
15/2
018
1,17
89.
64%
-92-
Exh
ibit
I-2
Bal
ance
,D
ate
ofA
mou
nt o
fP
rinc
ipal
Pay
men
tIn
tere
stJu
ne 3
0,Is
sue
Lea
seL
ease
Dat
eA
mou
ntR
ate
Issu
edR
etir
ed20
15
FA
IRV
IEW
BO
AR
D O
F E
DU
CA
TIO
NG
ener
al L
ong-
Ter
m D
ebt
Acc
oun
t G
rou
pS
ched
ule
of
Cap
ital
Lea
ses
Pay
able
Fis
cal Y
ear
En
ded
Ju
ne
30, 2
015
iPad
Acc
esso
ries
1/23
/201
511
,262
7/1/
2015
272
11.2
4%11
,262
800
10,4
628/
1/20
1527
511
.24%
9/1/
2015
277
11.2
4%
10/1
/201
528
011
.24%
11/1
/201
528
211
.24%
12/1
/201
528
511
.24%
1/1/
2016
288
11.2
4%
2/1/
2016
290
11.2
4%
3/1/
2016
293
11.2
4%
4/1/
2016
296
11.2
4%
5/1/
2016
299
11.2
4%
6/1/
2016
301
11.2
4%
7/1/
2016
304
11.2
4%
8/1/
2016
307
11.2
4%
9/1/
2016
310
11.2
4%
10/1
/201
631
311
.24%
11/1
/201
631
611
.24%
12/1
/201
631
911
.24%
1/1/
2017
322
11.2
4%
2/1/
2017
325
11.2
4%
3/1/
2017
328
11.2
4%
4/1/
2017
331
11.2
4%
5/1/
2017
334
11.2
4%
6/1/
2017
337
11.2
4%
7/1/
2017
340
11.2
4%
8/1/
2017
343
11.2
4%
9/1/
2017
347
11.2
4%
10/1
/201
735
011
.24%
11/1
/201
735
311
.24%
12/1
/201
735
611
.24%
1/1/
2018
360
11.2
4%
2/1/
2018
363
11.2
4%
3/1/
2018
366
11.2
4%
$12
4,35
817
,492
106,
866
-93-
Exh
ibit
I-3
FA
IRV
IEW
BO
AR
D O
F E
DU
CA
TIO
NB
ud
geta
ry C
omp
aris
on S
ched
ule
D
ebt
Ser
vice
Fu
nd
Fis
cal Y
ear
En
ded
Ju
ne
30, 2
015
Var
ianc
eO
rigi
nal
Bud
get
Fin
alP
osit
ive
(Neg
ativ
e)B
udge
tT
rans
fers
Bud
get
Act
ual
Fin
al to
Act
ual
RE
VE
NU
ES
:L
ocal
Sou
rces
:L
ocal
Tax
Lev
y84
,948
84
,948
84
,948
Tot
al L
ocal
Sou
rces
84,9
48
-
84
,948
84
,948
-
Tot
al R
even
ues
84,9
48
-
84
,948
84
,948
-
EX
PE
ND
ITU
RE
S:
Reg
ular
Deb
t Ser
vice
:In
tere
st -
Pen
sion
Ref
undi
ng B
onds
14,9
50
-
14
,950
14
,950
-
Red
empt
ion
of P
rinc
ipal
- P
ensi
on R
efun
ding
Bon
ds70
,000
-
70,0
00
70,0
00
-
Tot
al R
egul
ar D
ebt S
ervi
ce84
,950
-
84,9
50
84,9
50
-
Tot
al e
xpen
dit
ure
s84
,950
-
84,9
50
84,9
50
-
Exc
ess
(Def
icie
ncy)
of
Rev
enue
s O
ver
(Und
er)
Exp
endi
ture
s(2
)
-
(2
)
(2)
-
Exc
ess
(Def
icie
ncy)
of
Rev
enue
s an
d O
ther
Fin
anci
ng S
ourc
es O
ver
(Und
er)
Exp
endi
ture
s(2
)
-
(2
)
(2)
-
Fun
d B
alan
ce, J
uly
12
-
2
3
1
Fun
d B
alan
ce, J
une
30-
-
-
1
1
Rec
apit
ula
tion
of
Exc
ess
(Def
icie
ncy
) of
Rev
enu
es O
ver
(Un
der
) E
xpen
dit
ure
s
Bud
gete
d F
und
Bal
ance
(2)
(2
)
(2)
-
Tot
al(2
)
-
(2
)
(2)
-
-94-
STATISTICAL SECTION
STATISTICAL SECTION (UNAUDITED)
Introduction to the Statistical Section
Financial Trends
J-1 Net Assets/Position by Component
J-2 Changes in Net Assets/Position
J-3 Fund Balances - Governmental Funds
J-4 Changes in Fund Balances - Governmental Funds
J-5 General Fund Other Local Revenue by Source
Revenue Capacity
J-6 Assessed Value and Estimated Actual Value of Taxable Property
J-7 Direct and Overlapping Property Tax Rates
J-8 Principal Property Taxpayers
J-9 Property Tax Levies and Collections
Debt Capacity
J-10 Ratios of Outstanding Debt by Type
J-11 Ratios of General Bonded Debt Outstanding
J-12 Direct and Overlapping Governmental Activities Debt
J-13 Legal Debt Margin Information
Demographic and Economic Information
J-14 Demographic and Economic Statistics
J-15 Principal Employers
Operating Information
J-16 Full-time Equivalent District Employees by Function/Program
J-17 Operating Statistics
J-18 School Building Information*
J-19 Schedule of Allowable Maintenance Expenditures by School Facility
J-20 Insurance Schedule
STATISTICAL SECTION (UNAUDITED) - INTRODUCTION
J SERIES
Contents Page
Financial TrendsThese schedules contain trend information to help the readerunderstand how the district’s financial performance andwell-being have changes over time. J-1 to J-5
Revenue CapacityThese schedules contain information to help the reader assessthe district’s most significant local revenue sources, theproperty tax. J-6 to J-9
Debt CapacityThese schedules present information to help the reader assessthe affordability of the district’s current levels of outstandingdebt and the district’s ability to issue additional debt in thefuture. J-10 to J-13
Demographic and Economic InformationThese schedules offer demographic and economic indicatorsto help the reader understand the environment within whichthe district’s financial activities take place. J-14 to J-15
Operating InformationThese schedules contain service and infrastructure data tohelp the reader understand how the information in thedistrict’s financial report relates to the services the districtprovides and the activities it performs. J-16 to J-20
Sources: Unless otherwise noted, the information in these schedules isderived from the comprehensive annual financial reports(CAFR) for the relevant year. The district implemented GASBStatement 34 in the fiscal year ending June 30, 2004; schedulespresenting district-wide information include informationbeginning in that year.
Exh
ibit
J-1
Res
tate
d20
0620
0720
0820
0920
1020
1120
1220
1320
1420
15
Gov
ernm
enta
l act
iviti
esN
et in
vest
men
t in
capi
tal a
sset
s4,
129,
379
$
4,
049,
055
$
3,
942,
345
$
3,
968,
393
$
3,
910,
325
$
3,
979,
449
$
4,
162,
814
$
3,
629,
574
$
3,
727,
754
$
4,
278,
874
$
R
estri
cted
750,
002
650,
002
670,
002
420,
001
520,
001
520,
003
1,07
2,00
3
1,54
7,55
5
2,56
7,17
7
2,43
0,54
2
Unr
estri
cted
(732
,944
)
(895
,136
)
(1,0
58,8
14)
(1,5
31,9
10)
(1,7
41,4
74)
(1,3
33,1
96)
(740
,638
)
(416
,505
)
(685
,892
)
(4,2
26,3
36)
Tota
l gov
ernm
enta
l act
iviti
es n
et a
sset
s/po
sitio
n4,
146,
437
$
3,
803,
921
$
3,
553,
533
$
2,
856,
484
$
2,
688,
852
$
3,
166,
256
$
4,
494,
179
$
4,
760,
624
$
5,
609,
039
$
2,
483,
080
$
Bus
ines
s-ty
pe a
ctiv
ities
Net
inve
stm
ent i
n ca
pita
l ass
ets
3,08
7$
2,64
6$
2,20
5$
1,76
4$
5,69
9$
4,86
9$
4,03
9$
21,7
19$
17,5
14$
13,3
82$
Res
trict
edU
nres
trict
ed43
,449
40
,229
38
,860
13
,974
4,
828
11
,809
25
,851
32
,370
47
,235
58
,879
To
tal b
usin
ess-
type
act
iviti
es n
et a
sset
s/po
sitio
n46
,536
$
42
,875
$
41
,065
$
15
,738
$
10
,527
$
16
,678
$
29
,890
$
54
,089
$
64
,749
$
72
,261
$
Dis
trict
-wid
eN
et in
vest
men
t in
capi
tal a
sset
s4,
132,
466
$
4,
051,
701
$
3,
944,
550
$
3,
970,
157
$
3,
916,
024
$
3,
984,
318
$
4,
166,
853
$
3,
651,
293
$
3,
745,
268
$
4,
292,
256
$
R
estri
cted
750,
002
650,
002
670,
002
420,
001
520,
001
520,
003
1,07
2,00
3
1,54
7,55
5
2,56
7,17
7
2,43
0,54
2
Unr
estri
cted
(689
,495
)
(854
,907
)
(1,0
19,9
54)
(1,5
17,9
36)
(1,7
36,6
46)
(1,3
21,3
87)
(714
,787
)
(384
,135
)
(638
,657
)
(4,1
67,4
57)
Tota
l dis
trict
net
ass
ets/
posi
tion
4,19
2,97
3$
3,84
6,79
6$
3,59
4,59
8$
2,87
2,22
2$
2,69
9,37
9$
3,18
2,93
4$
4,52
4,06
9$
4,81
4,71
3$
5,67
3,78
8$
2,55
5,34
1$
Sour
ce:
CA
FR S
cehd
ule
A-1
* - G
ASB
Sta
tem
ent N
o. 6
3 be
cam
e ef
fect
ive
for t
he fi
scal
yea
r end
ed Ju
ne 3
0, 2
014
whi
ch c
hang
ed N
et A
sset
s to
Net
Pos
ition
.
Fair
view
Boa
rd o
f Edu
catio
nN
et A
sset
s/Po
sitio
n* b
y C
ompo
nent
Las
t Ten
Fis
cal Y
ears
(acc
rual
bas
is o
f acc
ount
ing)
-95-
Exh
ibit
J-2
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Exp
ense
sG
over
nmen
tal a
ctiv
ities
Inst
ruct
ion
Reg
ular
8,95
0,66
2$
9,
719,
972
$
9,62
6,43
9$
10
,738
,221
$
10,7
43,0
19$
10
,761
,698
$
3,78
2,76
8$
4,
420,
441
$
4,62
4,71
4$
5,
851,
323
$
Sp
ecia
l edu
catio
n2,
864,
393
3,51
1,49
7
3,
746,
516
3,54
2,76
7
4,
011,
801
4,01
6,90
7
2,
236,
828
2,30
4,75
5
2,
975,
019
3,17
7,74
7
Oth
er sp
ecia
l edu
catio
n83
8,43
2
909,
259
84
2,32
6
1,09
0,30
0
91
6,76
3
961,
057
81
4,90
9
823,
416
1,
000,
664
903,
934
Oth
er in
stru
ctio
n40
,651
41
,988
49,3
26
50
,781
49,3
29
47
,425
41,8
13
41
,975
40,4
68
55
,423
Supp
ort S
ervi
ces:
Tuiti
on7,
731,
156
8,36
9,48
2
7,
212,
821
7,63
2,69
5
Stud
ent &
inst
ruct
ion
rela
ted
serv
ices
1,50
1,49
5
1,
367,
511
1,66
4,90
2
1,
654,
223
1,95
6,14
5
1,
899,
435
1,80
0,44
5
1,
873,
252
2,03
1,34
3
2,
220,
215
G
ener
al a
dmin
istra
tive
serv
ices
698,
363
71
2,09
1
650,
565
82
7,73
4
725,
122
51
1,18
2
710,
932
72
0,15
5
711,
639
89
2,61
5
Sc
hool
adm
inis
trativ
e se
rvic
es39
2,16
4
443,
054
35
3,49
2
639,
492
69
8,90
8
692,
238
55
8,41
1
619,
650
65
0,90
7
738,
929
Cen
tral A
dmin
istra
tion
456,
995
47
6,99
0
444,
852
56
0,42
1
597,
415
55
4,81
5
520,
651
54
5,10
8
608,
662
74
0,15
6
Pl
ant o
pera
tions
and
mai
nten
ance
1,72
8,64
4
1,
908,
092
1,98
7,12
5
2,
003,
792
1,90
8,76
5
1,
563,
608
1,24
1,88
4
1,
545,
544
1,49
2,20
4
1,
557,
489
Pu
pil t
rans
porta
tion
319,
329
30
5,12
4
348,
583
26
2,22
2
233,
296
23
4,66
0
186,
349
21
8,11
9
365,
833
39
4,45
9
U
nallo
cate
d B
enef
its1,
061,
662
1,00
8,79
9
1,
267,
932
1,48
8,28
7
Spec
ial S
choo
ls21
,000
21,0
00
21
,000
21,0
00
Cha
rter S
choo
ls11
,981
12,1
64
In
tere
st o
n lo
ng-te
rm d
ebt
121,
146
11
1,03
5
100,
419
88
,595
73,2
51
61
,444
46,0
99
27
,540
21,1
28
15
,561
U
nallo
cate
d de
prec
iatio
n36
6,13
1
412,
071
32
2,40
5
245,
381
Am
ortiz
atio
n &
Cap
ital L
ease
Obl
igat
ions
2,00
0
2,33
3
2,33
3
2,33
3
C
apita
l Out
lay
- non
depr
ecia
ble
12,1
09
5,
480
To
tal g
over
nmen
tal a
ctiv
ities
exp
ense
s17
,912
,274
19
,506
,613
19,8
14,5
45
21
,458
,548
21,9
13,8
14
21
,304
,469
21,1
35,0
19
22
,977
,913
23,3
54,5
52
25
,937
,547
Bus
ines
s-ty
pe a
ctiv
ities
:Fo
od se
rvic
e21
3,85
1
235,
645
26
5,35
0
304,
344
34
8,67
4
353,
781
36
5,90
9
368,
995
38
9,47
1
329,
670
Tota
l bus
ines
s-ty
pe a
ctiv
ities
exp
ense
213,
851
23
5,64
5
265,
350
30
4,34
4
348,
674
35
3,78
1
365,
909
36
8,99
5
389,
471
32
9,67
0
To
tal d
istri
ct e
xpen
ses
18,1
26,1
25$
19,7
42,2
58$
20
,079
,895
$
21,7
62,8
92$
22
,262
,488
$
21,6
58,2
50$
21
,500
,928
$
23,3
46,9
08$
23
,744
,023
$
26,2
67,2
17$
Prog
ram
Rev
enue
sG
over
nmen
tal a
ctiv
ities
:C
harg
es fo
r ser
vice
s:24
,300
11,1
20
O
pera
ting
gran
ts a
nd c
ontri
butio
ns3,
760,
187
4,24
4,90
6
4,
257,
549
3,56
7,20
0
5,
293,
020
4,03
1,69
4
1,
584,
694
1,55
5,35
6
1,
733,
921
1,57
1,38
6
Tota
l gov
ernm
enta
l act
iviti
es p
rogr
am re
venu
es3,
760,
187
4,24
4,90
6
4,
257,
549
3,56
7,20
0
5,
317,
320
4,04
2,81
4
1,
584,
694
1,55
5,35
6
1,
733,
921
1,57
1,38
6
Fair
view
Boa
rd o
f Edu
catio
nC
hang
es in
Net
Ass
ets/
Posi
tion*
, Las
t Ten
Fis
cal Y
ears
(acc
rual
bas
is o
f acc
ount
ing)
-96-
Exh
ibit
J-2
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Fair
view
Boa
rd o
f Edu
catio
nC
hang
es in
Net
Ass
ets/
Posi
tion*
, Las
t Ten
Fis
cal Y
ears
(acc
rual
bas
is o
f acc
ount
ing)
Bus
ines
s-ty
pe a
ctiv
ities
:C
harg
es fo
r ser
vice
sFo
od se
rvic
e39
,309
35
,696
30,0
20
30
,389
29,3
70
41
,095
42,3
73
32
,968
31,0
41
10
,005
O
pera
ting
gran
ts a
nd c
ontri
butio
ns16
8,67
2
191,
820
23
1,87
8
245,
642
30
2,18
4
311,
107
33
4,17
3
333,
015
36
2,18
3
317,
090
Tota
l bus
ines
s typ
e ac
tiviti
es p
rogr
am re
venu
es20
7,98
1
227,
516
26
1,89
8
276,
031
33
1,55
4
356,
869
37
6,54
6
365,
983
39
3,22
4
327,
095
Tota
l dis
trict
pro
gram
reve
nues
3,96
8,16
8$
4,
472,
422
$
4,51
9,44
7$
3,
843,
231
$
5,64
8,87
4$
4,
399,
683
$
1,96
1,24
0$
1,
921,
339
$
2,12
7,14
5$
1,
898,
481
$
Net
(Exp
ense
)/Rev
enue
Gov
ernm
enta
l act
iviti
es(1
4,15
2,08
7)$
(1
5,26
1,70
7)$
(15,
556,
996)
$ (1
7,89
1,34
8)$
(16,
596,
494)
$ (1
7,26
1,65
5)$
(19,
550,
325)
$ (2
1,42
2,55
7)$
(21,
620,
631)
$ (2
4,36
6,16
1)$
B
usin
ess-
type
act
iviti
es(5
,870
)
(8,1
29)
(3,4
52)
(28,
313)
(17,
120.
00)
3,08
8.00
10
,637
.00
(3,0
12.0
0)
3,75
3
(2,5
75)
To
tal d
istri
ct-w
ide
net e
xpen
se(1
4,15
7,95
7)$
(1
5,26
9,83
6)$
(15,
560,
448)
$ (1
7,91
9,66
1)$
(16,
613,
614)
$ (1
7,25
8,56
7)$
(19,
539,
688)
$ (2
1,42
5,56
9)$
(21,
616,
878)
$ (2
4,36
8,73
6)$
Gen
eral
Rev
enue
s and
Oth
er C
hang
es in
Net
Ass
ets/
Posi
tion
Gov
ernm
enta
l act
iviti
es:
Prop
erty
taxe
s lev
ied
for g
ener
al p
urpo
ses,
net
10,3
12,3
13$
11,0
56,5
69$
11
,256
,133
$
11,5
29,9
56$
11
,426
,385
$
12,0
12,1
59$
12
,333
,147
$
12,5
79,8
10$
13
,184
,444
$
13,4
48,1
33$
Taxe
s lev
ied
for d
ebt s
ervi
ce29
8,64
127
6,89
627
2,83
627
3,66
126
9,11
827
7,88
727
3,01
627
3,13
327
2,94
584
,948
Unr
estri
cted
gra
nts a
nd c
ontri
butio
ns3,
304,
111
3,31
2,40
8
3,
655,
372
5,23
4,80
5
4,
637,
819
5,37
6,91
2
7,
966,
089
8,74
4,80
2
8,
861,
509
10,6
58,3
16
Tuiti
on fr
om S
umm
er S
choo
l13
,050
10,5
30
Inve
stm
ent e
arni
ngs
119,
155
14
0,98
0
65,1
57
15
,696
9,43
4
6,71
9
6,16
1
5,60
2
3,45
7
2,95
5
M
isce
llane
ous i
ncom
e 76
,037
77
,608
1,10
9
86,0
28
36
,770
25,4
69
15
,215
32,0
87
86
,618
354,
499
Stat
e A
id- R
estri
cted
for D
ebt S
ervi
ce34
,775
58
,155
57,6
43
57
,139
56,5
78
47
,643
47,1
91
46
,770
46,3
42
St
ste
Aid
- C
apita
l Out
lay
Faci
litie
s Gra
nt21
3,95
8
Lo
ss o
n Sa
le o
f Cap
ital A
sset
(7,3
25)
Tr
ansf
ers
(3,4
24)
(1,6
42)
(2,9
86)
(7,2
42)
(7,7
30)
(2,5
75)
(5,3
11)
(4,7
99)
(10,
044)
Fe
dera
l and
Sta
te A
id -
Cap
ital o
utla
y28
,556
12,1
09
5,
480
8,
954
Tota
l gov
ernm
enta
l act
iviti
es14
,137
,707
14
,919
,192
15,3
06,6
08
17
,194
,299
16,4
28,8
62
17
,739
,059
20,6
38,2
44
21
,689
,002
22,4
69,0
46
24
,772
,249
Bus
ines
s-ty
pe a
ctiv
ities
:In
vest
men
t ear
ning
s1,
692
1,04
4
15
49
43
Mis
cella
neou
s Inc
ome
2,05
9
Tran
sfer
s3,
424
1,
642
2,
986
7,
242
7,
730
2,
575
5,
311
4,
799
10
,044
To
tal b
usin
ess-
type
act
iviti
es1,
692
4,46
8
1,64
2
2,98
6
7,24
2
7,73
0
2,57
5
5,32
6
6,90
7
10,0
87
Tota
l dis
trict
-wid
e14
,139
,399
$
14
,923
,660
$
15,3
08,2
50$
17
,197
,285
$
16,4
36,1
04$
17
,746
,789
$
20,6
40,8
19$
21
,694
,328
$
22,4
75,9
53$
24
,782
,336
$
Cha
nge
in N
et A
sset
s/Po
sitio
nG
over
nmen
tal a
ctiv
ities
(14,
380)
$
(3
42,5
15)
$
(2
50,3
88)
$
(6
97,0
49)
$
(1
67,6
32)
$
47
7,40
4$
1,08
7,91
9$
26
6,44
5$
848,
415
$
40
6,08
8$
B
usin
ess-
type
act
iviti
es(4
,178
)
(3,6
61)
(1,8
10)
(25,
327)
(9,8
78)
10,8
18
13
,212
2,31
4
10,6
60
7,
512
Tota
l dis
trict
(18,
558)
$
(3
46,1
76)
$
(2
52,1
98)
$
(7
22,3
76)
$
(1
77,5
10)
$
48
8,22
2$
1,10
1,13
1$
26
8,75
9$
859,
075
$
41
3,60
0$
Sour
ce:
CA
FR S
ched
ule
A-2
* - G
ASB
Sta
tem
ent N
o. 6
3 be
cam
e ef
fect
ive
for t
he fi
scal
yea
r end
ed Ju
ne 3
0, 2
014
whi
ch c
hang
ed N
et A
sset
s to
Net
Pos
ition
.
-97-
Exh
ibit
J-3
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Gen
eral
Fun
dR
eser
ved
1,24
7,37
0$
98
7,92
8$
98
9,86
7$
68
8,75
4$
57
6,80
0$
U
nres
erve
d37
2,48
1
329,
653
192,
460
(309
,537
)
(290
,936
)
Res
trict
ed52
0,00
0
1,
072,
000
1,
361,
306
1,
960,
447
97
2,23
9
C
omm
itted
102,
552
189,
374
Ass
igne
d27
8,25
8
57
4,22
9
36
2,87
5
60
6,72
7
70
0,99
7
U
nass
igne
d(3
56,3
40)
(2
07,1
59)
(6
7,83
3)
(1
49,2
77)
(9
3,22
1)
To
tal g
ener
al fu
nd1,
619,
851
$
1,31
7,58
1$
1,18
2,32
7$
379,
217
$
285,
864
$
544,
470
$
1,62
8,44
4$
1,65
6,34
8$
2,41
7,89
7$
1,58
0,01
5$
All
Oth
er G
over
nmen
tal F
unds
Res
erve
dU
nres
erve
d, re
porte
d in
:Sp
ecia
l rev
enue
fund
2
(11,
346)
(41,
166)
(9,4
89)
(10,
087)
Ass
igne
d, re
porte
d in
:C
apita
l pro
ject
s fun
d75
7,30
5
D
ebt s
ervi
ce fu
nd5
3
1
To
tal a
ll ot
her g
over
nmen
tal f
unds
2$
(11,
346)
$
(41,
166)
$
(9,4
89)
$
(10,
087)
$
-$
-
$
5$
3$
757,
306
$
Sour
ce:
CA
FR S
ched
ule
B-1
Fair
view
Boa
rd o
f Edu
catio
nFu
nd B
alan
ces,
Gov
ernm
enta
l Fun
ds,
Las
t Ten
Fis
cal Y
ears
(mod
ified
acc
rual
bas
is o
f acc
ount
ing)
-98-
Exh
ibit
J-4
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Rev
enue
sTa
x le
vy10
,610
,954
$
11,3
33,4
65$
11
,528
,969
$
11,8
03,6
17$
11
,695
,503
$
12,2
90,0
46$
12
,606
,163
$
12,8
52,9
43$
13
,457
,389
$
13,5
33,0
81$
Tu
ition
from
Sum
mer
Sch
ool
13,0
50
10
,530
Inte
rest
ear
ning
s11
9,15
514
0,98
065
,157
15,6
96
9,
434
6,
719
6,
161
5,
602
3,
457
2,
955
M
isce
llane
ous
78,5
3777
,608
1,10
986
,028
67,1
62
36
,589
33,5
28
32
,087
86,6
18
35
9,49
9
Stat
e so
urce
s6,
092,
626
6,54
7,39
6
7,
109,
565
7,55
2,54
3
7,
231,
564
7,52
8,18
8
8,
029,
646
9,02
0,97
6
9,
089,
121
9,75
3,05
3
Fe
dera
l sou
rces
1,00
3,94
7
1,
068,
073
860,
999
1,
306,
601
2,74
9,76
1
1,
928,
061
1,57
8,57
1
1,
338,
061
1,55
8,13
1
1,
274,
579
Tota
l rev
enue
17,9
05,2
19
19
,167
,522
19,5
65,7
99
20
,764
,485
21,7
53,4
24
21
,789
,603
22,2
54,0
69
23
,249
,669
24,2
07,7
66
24
,933
,697
Exp
endi
ture
sIn
stru
ctio
nR
egul
ar In
stru
ctio
n8,
883,
682
9,72
9,41
7
9,
604,
049
10,7
32,9
88
10
,713
,900
10,8
05,7
10
3,
094,
277
3,67
0,68
5
3,
855,
384
4,31
0,40
7
Sp
ecia
l edu
catio
n in
stru
ctio
n2,
856,
582
3,51
4,95
5
3,
739,
742
3,54
2,21
1
4,
003,
314
4,02
1,59
0
1,
978,
014
2,03
5,33
1
2,
656,
458
2,59
6,87
1
O
ther
spec
ial i
nstru
ctio
n83
1,92
6
912,
079
83
7,99
2
1,08
9,76
1
91
0,49
1
973,
109
65
1,28
6
658,
033
80
1,68
0
630,
001
O
ther
inst
ruct
ion
40,3
99
42
,093
49,0
90
50
,759
49,0
03
47
,425
33,6
87
34
,064
33,2
03
41
,045
Supp
ort S
ervi
ces:
Inst
ruct
ion
1,49
2,45
9
1,
368,
940
1,65
9,84
6
1,
653,
736
1,94
8,40
0
1,
912,
209
7,73
1,15
6
8,
369,
482
7,21
2,82
1
7,
632,
695
Atte
ndan
ce a
nd so
cial
wor
k se
rvic
es13
0,88
1
142,
313
20
1,27
0
192,
213
H
ealth
Ser
vice
s22
3,78
9
218,
213
21
6,22
5
231,
111
St
uden
t & in
stru
ctio
n re
late
d se
rvic
es1,
251,
592
1,29
8,10
4
1,
347,
301
1,32
6,67
1
G
ener
al a
dmin
istra
tive
serv
ices
691,
738
70
9,61
0
646,
473
82
5,41
9
695,
092
69
7,11
3
629,
989
63
6,64
1
641,
438
73
4,97
0
Scho
ol A
dmin
istra
tive
serv
ices
381,
048
43
6,56
4
339,
821
62
8,07
0
710,
798
50
9,86
1
446,
274
49
4,87
8
520,
984
51
4,54
0
Cen
tral a
dmin
istra
tive
serv
ices
453,
121
47
8,60
8
442,
361
56
0,14
4
593,
357
56
1,68
0
421,
074
44
1,03
7
492,
169
53
0,86
2
Plan
t ope
ratio
ns a
nd m
aint
enan
ce1,
427,
339
1,59
5,27
7
1,
698,
325
1,71
4,47
9
1,
595,
386
1,28
9,05
3
1,
135,
263
1,40
2,05
1
1,
390,
071
1,29
7,23
6
Pu
pil t
rans
porta
tion
291,
373
27
5,83
5
314,
940
22
3,46
7
204,
559
20
9,90
5
186,
070
21
7,13
4
364,
070
30
3,80
7
Una
lloca
ted
empl
oyee
ben
efits
1,71
2,79
4
1,
863,
931
2,10
8,81
8
2,
429,
458
TPA
F Pe
nsio
n / S
ocia
l Sec
urity
1,07
2,59
8
1,
344,
444
1,25
3,75
9
1,
424,
445
Sum
mer
Sch
ool I
nstru
ctio
n21
,000
21,0
00
21
,000
21,0
00
C
harte
r Sch
ools
11,9
81
12
,164
Cap
ital o
utla
y10
3,87
4
51,1
26
54
,214
150,
316
65
,825
145,
216
10
4,88
1
12,1
09
5,
480
82
4,66
5
Deb
t ser
vice
:Pr
inci
pal
275,
520
29
3,02
2
285,
760
31
5,50
0
272,
731
28
5,09
1
290,
893
29
6,47
8
295,
300
70
,000
Inte
rest
and
oth
er c
harg
es12
2,00
5
113,
521
10
2,17
6
91,8
20
77
,276
65,3
03
52
,061
38,2
73
23
,989
14,9
50
To
tal e
xpen
ditu
res
17,8
51,0
66
19
,521
,047
19,7
74,7
89
21
,578
,670
21,8
40,1
32
21
,523
,265
21,1
79,5
60
23
,206
,365
23,4
41,4
20
25
,126
,947
Exce
ss (D
efic
ienc
y) o
f rev
enue
s o
ver (
unde
r) e
xpen
ditu
res
54,1
53
(3
53,5
25)
(2
08,9
90)
(8
14,1
85)
(8
6,70
8)
26
6,33
8
1,07
4,50
9
43
,304
766,
346
(1
93,2
50)
Fair
view
Boa
rd o
f Edu
catio
nC
hang
es in
Fun
d B
alan
ces,
Gov
ernm
enta
l Fun
ds,
Las
t Ten
Fis
cal Y
ears
-99-
Exh
ibit
J-4
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Fair
view
Boa
rd o
f Edu
catio
nC
hang
es in
Fun
d B
alan
ces,
Gov
ernm
enta
l Fun
ds,
Las
t Ten
Fis
cal Y
ears
Oth
er F
inan
cing
sour
ces (
uses
)C
apita
l lea
ses (
non-
budg
eted
)90
,250
43,3
32
45
,558
45,7
38
12
,040
124,
358
Tr
ansf
ers i
n1,
234,
700
Tran
sfer
s out
(3,4
24)
(1,6
42)
(2,9
86)
(7,2
42)
(7,7
30)
(2,5
75)
(5,3
11)
(4,7
99)
(1,2
44,7
44)
Tota
l oth
er fi
nanc
ing
sour
ces (
uses
)90
,250
39,9
08
43
,916
42,7
52
(7
,242
)
(7
,730
)
9,
465
(5
,311
)
(4
,799
)
11
4,31
4
Net
cha
nge
in fu
nd b
alan
ces
144,
403
$
(3
13,6
17)
$
(1
65,0
74)
$
(7
71,4
33)
$
(9
3,95
0)$
25
8,60
8$
1,08
3,97
4$
37
,993
$
761,
547
$
(7
8,93
6)$
Deb
t ser
vice
as a
per
cent
age
ofno
ncap
ital e
xpen
ditu
res
2.2%
2.1%
2.0%
1.9%
1.6%
1.6%
1.6%
1.4%
1.4%
0.3%
NO
TE:
Cap
ital P
roje
cts F
und
is n
ot in
clud
ed a
s the
se e
xpen
ditu
res v
ary
subs
tant
ially
from
yea
r to
year
. Th
e fin
anci
al d
ata
pres
ente
dw
ould
not
be
as m
eani
ngfu
l for
com
para
tive
purp
oses
if th
ese
wer
e in
clud
ed.
Sour
ce: C
AFR
Sch
edul
e B
-2 a
nd C
-2
-100-
Exh
ibit
J-5
Fisc
al Y
ear
Inte
rest
on
Rei
mb.
/Tr
ansp
orta
tion
Ende
d Ju
ne 3
0,In
vest
men
tsR
efun
dsE-
Rat
eFe
esC
ance
llatio
nsM
isc.
Tota
l
2006
119,
155
59
,755
16,2
82
195,
192
20
0714
0,98
0
54,5
14
23
,094
21
8,58
8
2008
65,1
57
318
791
66,2
66
2009
15,6
96
20,5
29
7,22
7
58,2
72
101,
724
20
109,
434
16,3
34
19,8
56
24,3
00
6,94
2
76,8
66
2011
6,71
9
5,
516
19,4
50
11,1
20
503
43,3
08
2012
6,16
1
15
,215
21
,376
20
135,
602
1,34
6
19
,756
3,
732
30
,436
20
143,
457
60,7
06
18,8
90
7,02
2
90,0
75
2015
2,95
5
26
2,33
2
65,5
76
37
,121
36
7,98
4
Sour
ce: D
istri
ct R
ecor
ds
Fair
view
Boa
rd o
f Edu
catio
nG
ener
al F
und
Oth
er L
ocal
Rev
enue
by
Sour
ceL
ast T
en F
isca
l Yea
rsU
naud
ited
-101-
Exh
ibit
J-6
Yea
r En
ded
Dec
. 31,
Vac
ant L
and
Res
iden
tial
Farm
Reg
.Q
farm
Com
mer
cial
Indu
stria
lA
partm
ent
Tota
l Ass
esse
d V
alue
Less
: Tax
-Ex
empt
Pr
oper
tyPu
blic
Util
ities
aN
et V
alua
tion
Taxa
ble
Tota
l Dire
ct
Scho
ol T
ax
Rat
e b
Estim
ated
Act
ual
(Cou
nty
Equa
lized
V
alue
)
% o
f Net
A
sses
sed
to
Estim
ated
Ful
l C
ash
Val
uatio
ns
2005
7,04
0,60
0$
376,
778,
600
$
11
3,72
6,00
0$
46,1
66,3
00$
67,9
39,7
00$
611,
651,
200
$
-
$
45
4,27
3$
612,
105,
473
$
1.
690
970,
227,
440
$
63.0
9%20
067,
870,
000
$
38
2,55
6,30
0$
111,
963,
200
$
46
,232
,700
$
67
,644
,000
$
61
6,26
6,20
0$
-$
384,
752
$
61
6,65
0,95
2$
1.78
01,
108,
539,
690
$
55
.63%
2007
6,89
9,60
0$
388,
905,
900
$
11
1,00
8,70
0$
45,8
29,8
00$
66,9
30,5
00$
619,
574,
500
$
-
$
34
8,38
9$
619,
922,
889
$
1.
840
1,26
6,22
4,92
1$
48.9
6%20
086,
654,
300
$
39
3,76
8,00
0$
109,
705,
800
$
45
,055
,600
$
66
,781
,400
$
62
1,96
5,10
0$
-$
349,
378
$
62
2,31
4,47
8$
1.87
51,
318,
965,
021
$
47
.18%
2009
5,94
0,90
0$
396,
883,
300
$
10
6,92
4,20
0$
44,9
76,4
00$
67,4
09,0
00$
622,
133,
800
$
-
$
28
3,21
1$
622,
417,
011
$
1.
891
1,57
9,98
9,30
2$
39.3
9%20
106,
373,
400
$
39
8,45
9,40
0$
105,
728,
800
$
45
,218
,600
$
67
,028
,400
$
62
2,80
8,60
0$
-$
304,
346
$
62
3,11
2,94
6$
1.92
51,
317,
581,
419
$
47
.29%
2011
11,0
02,5
00$
634,
853,
000
$
20
0,42
5,30
0$
82,9
11,9
00$
126,
722,
100
$
1,
055,
914,
800
$
-$
1,29
6,91
3$
1,
057,
211,
713
$
1.17
71,
198,
088,
239
$
88
.24%
2012
11,0
02,5
00$
634,
545,
200
$
19
5,54
8,00
0$
80,5
15,4
00$
124,
204,
300
$
1,
045,
815,
400
$
-$
1,19
7,87
5$
1,
047,
013,
275
$
1.21
61,
155,
691,
027
$
90
.60%
2013
9,00
7,60
0$
638,
695,
300
$
19
2,63
1,00
0$
76,2
79,1
00$
127,
430,
000
$
1,
044,
043,
000
$
-$
1,25
1,76
0$
1,
045,
294,
760
$
1.26
41,
089,
563,
815
$
95
.94%
2014
9,00
7,60
0$
638,
695,
300
$
19
2,63
1,00
0$
76,2
79,1
00$
127,
430,
000
$
1,
044,
043,
000
$
-$
1,29
7,94
0$
1,
045,
340,
940
$
1.29
51,
111,
156,
875
$
94
.08%
Sour
ce: M
unic
ipal
Tax
Ass
esso
r
Rea
sses
smen
t occ
urs w
hen
orde
red
by th
e C
ount
y B
oard
of T
axat
ion
a T
axab
le V
alue
of M
achi
nery
, Im
plem
ents
and
Equ
ipm
ent o
f Tel
epho
ne, T
eleg
raph
and
Mes
seng
er S
yste
m C
ompa
nies
b T
ax ra
tes a
re p
er $
100
NO
TE:
Rea
l pro
perty
is re
quire
d to
be
asse
ssed
at s
ome
perc
enta
ge o
f tru
e va
lue
(fai
r or m
arke
t val
ue) e
stab
lishe
d by
eac
h co
unty
boa
rd o
f tax
atio
n.
Fair
view
Boa
rd o
f Edu
catio
nA
sses
sed
Val
ue a
nd A
ctua
l Val
ue o
f Tax
able
Pro
pert
yL
ast T
en F
isca
l Yea
rs
-102-
Exh
ibit
J-7
Ove
rlapp
ing
Rat
es
Bas
ic R
ate a
Gen
eral
O
blig
atio
n D
ebt S
ervi
ce b
Tota
l Dire
ctB
orou
gh o
f Fa
irvie
wB
erge
n C
ount
y
Fisc
al
Yea
r En
ded
Dec
. 31,
2005
1.69
01.
690
1.43
00.
310
3.43
020
061.
780
1.78
01.
530
0.33
03.
640
2007
1.84
31.
843
1.60
00.
360
3.80
320
081.
875
1.87
51.
689
0.39
23.
956
2009
1.89
11.
891
1.77
30.
486
4.15
020
101.
925
1.92
51.
857
0.45
84.
240
2011
1.15
00.
263
1.41
31.
158
0.23
22.
803
2012
1.10
00.
026
1.12
61.
229
0.23
92.
594
2013
1.23
80.
026
1.26
41.
265
0.25
22.
781
2014
1.26
90.
026
1.29
51.
329
0.24
52.
869
Sour
ce: D
istri
ct R
ecor
ds a
nd M
unic
ipal
Tax
Col
lect
or
Not
e:Th
e le
vy w
hen
adde
d to
oth
er c
ompo
nent
s of t
he d
istri
ct's
net b
udge
t may
not
exc
eed
the
preb
udge
t yea
r net
bud
get b
y m
ore
than
the
spen
ding
gro
wth
lim
itatio
n ca
lcul
ated
as f
ollo
ws:
the
preb
udge
t yea
r net
bud
get i
ncre
ased
by
the
cost
of l
ivin
g or
2.5
per
cent
, whi
ch e
ver i
s gre
ater
,pl
us a
ny p
endi
ng g
row
th a
djus
tmen
ts.
aTh
e di
stric
t's b
asic
tax
rate
is c
alcu
late
d fr
om th
e A
4F fo
rm w
hich
is su
bmitt
ed w
ith th
e bu
dget
and
th
e N
et v
alua
tion
taxa
ble.
bR
ates
for d
ebt s
ervi
ce a
re b
ased
on
each
yea
r's re
quire
men
ts.
Fair
view
Boa
rd o
f Edu
catio
nD
irec
t and
Ove
rlap
ping
Pro
pert
y T
ax R
ates
Las
t Ten
Fis
cal Y
ears
(rat
e pe
r $10
0 of
ass
esse
d va
lue)
Fairv
iew
Boa
rd o
f Edu
catio
n
NJS
A 1
8A:7
F-5d
lim
its th
e am
ount
that
the
dist
rict c
an su
bmit
for a
gen
eral
fund
tax
levy
.
Tota
l Dire
ct
and
Ove
rlapp
ing
Tax
Rat
e
-103-
Exh
ibit
J-8
Taxa
ble
% o
f Tot
alTa
xabl
e%
of T
otal
Ass
esse
dR
ank
Dis
trict
Net
A
sses
sed
Ran
kD
istri
ct N
et
Taxp
ayer
Val
ue[O
ptio
nal]
Ass
esse
d V
alue
Val
ue[O
ptio
nal]
Ass
esse
d V
alue
Fairv
iew
Ass
ocia
tes 9
4, L
.P.
17,8
00,5
00$
11.
70%
7,50
0,00
0$
2
1.22
%Fa
irvie
w In
dust
rial P
ark
Inc
14,0
00,0
00$
21.
34%
10,6
00,0
00$
11.
72%
HLF
Pas
saic
200
5 LL
C11
,829
,700
$
4
1.13
%R
onal
d R
ealty
Co
LLC
12,7
13,5
00$
31.
22%
6,52
0,00
0$
5
1.06
%Fa
irvie
w B
erge
n Pr
oper
ty L
LC7,
117,
900
$
50.
68%
Kou
stas
Rea
lty3,
582,
000
$
70.
58%
Acq
uipo
rt/A
msd
sell
3,04
1,30
0$
10
0.49
%B
abac
i, LL
C5,
475,
600
$
80.
52%
Vai
l Dev
elop
men
t, LL
C3,
231,
600
$
90.
52%
New
Age
Ven
ture
s, In
c3,
548,
700
$
80.
58%
Was
te M
anag
emen
t of N
J6,
000,
000
$
75,
896,
300
$
60.
96%
Bon
anno
Rea
l Est
ate
Gro
up II
7,10
0,00
0$
6
0.68
%67
,122
,000
$
4
10.8
8%B
onan
no R
eal E
stat
e G
roup
I4,
846,
200
$
90.
46%
Pass
aic
85 A
ssoc
iate
s7,
022,
500
$
31.
14%
Sher
idan
Rea
lty C
ompa
ny4,
840,
800
$
100.
46%
Tota
l91
,724
,200
$
8.
20%
118,
064,
400
$
19
.15%
Net
Ass
esse
d V
alua
tion:
1,04
5,34
0,94
0$
616,
650,
952
$
Sour
ce:
Mun
icip
al T
ax A
sses
sor.
2015
2006
Fair
view
Boa
rd o
f Edu
catio
nPr
inci
pal P
rope
rty
Tax
paye
rsC
urre
nt Y
ear
and
Nin
e Y
ears
Ago
-104-
Exh
ibit
J-9
Am
ount
Perc
enta
ge o
f Le
vy
2006
$10,
610,
954
$10,
610,
954
100.
00%
-$
20
07$1
1,33
3,46
5$1
1,33
3,46
510
0.00
%-
$
2008
$11,
528,
969
$11,
528,
969
100.
00%
-$
20
09$1
1,80
3,61
7$1
1,80
3,61
710
0.00
%-
$
2010
$11,
695,
503
$11,
695,
503
100.
00%
-$
20
11$1
2,29
0,04
6$1
1,76
5,87
695
.74%
524,
170
$
2012
$12,
606,
163
$11,
555,
649
91.6
7%1,
050,
514
$
20
13$1
2,85
2,94
3$1
1,78
1,86
491
.67%
1,07
1,07
9$
2014
$13,
457,
389
$12,
335,
940
91.6
7%1,
121,
449
$
20
15$1
3,53
3,08
1$1
2,40
5,32
491
.67%
1,12
7,75
7$
Sour
ce: M
unic
ipal
Tax
Col
lect
or
Fair
view
Boa
rd o
f Edu
catio
nPr
oper
ty T
ax L
evie
s and
Col
lect
ions
Las
t Ten
Fis
cal Y
ears
Fisc
al
Yea
r En
ded
June
30,
Col
lect
ed w
ithin
the
Fisc
al Y
ear
of th
e Le
vy
Dis
trict
Tax
es
Levi
ed fo
r the
Fi
scal
Yea
r
Col
lect
ions
in
Subs
eque
nt
Yea
rs
-105-
Exh
ibit
J-10
Bus
ines
s-Ty
pe
Act
iviti
esFi
scal
Y
ear
Ende
d Ju
ne 3
0,
Gen
eral
O
blig
atio
n B
onds
/Loa
ns b
Cer
tific
ates
of
Pa
rtici
patio
nC
apita
l Le
ases
Bon
d A
ntic
ipat
ion
Not
es
(BA
Ns)
Cap
ital L
ease
sTo
tal D
istri
ct
Perc
enta
ge o
f Pe
rson
al
Inco
me
aPe
r Cap
ita a
2006
2,35
9,24
4
-
171,
719
-
-
2,53
0,96
3
2.
49%
63,1
03$
20
072,
132,
122
-
10
5,81
9
-
-
2,
237,
941
3.02
%67
,544
$
2008
1,89
9,12
4
-
98,6
15
-
-
1,99
7,73
9
3.
37%
67,3
31$
20
091,
654,
902
-
73
,075
-
-
1,
727,
977
3.70
%63
,874
$
2010
1,40
4,36
1
-
50,8
85
-
-
1,45
5,24
6
4.
39%
63,8
85$
20
111,
142,
014
-
28
,141
-
-
1,
170,
155
5.75
%67
,248
$
2012
872,
509
-
18,7
93
-
-
891,
302
7.
77%
69,2
81$
20
1359
0,30
0
-
4,
524
-
-
59
4,82
4
11.6
8%69
,495
$
2014
295,
000
-
-
-
-
295,
000
N
ot A
vaila
ble
Not
Ava
ilabl
e20
1522
5,00
0
-
10
6,86
6
-
-
33
1,86
6
Not
Ava
ilabl
eN
ot A
vaila
ble
Sour
ce:
Dis
trict
CA
FR S
ched
ules
I-1,
I-2
Not
e: D
etai
ls re
gard
ing
the
dist
rict's
out
stan
ding
deb
t can
be
foun
d in
the
note
s to
the
finan
cial
stat
emen
ts.
aSe
e E
xhib
it N
J J-1
4 fo
r per
sona
l inc
ome
and
popu
latio
n da
ta.
Thes
e ra
tios a
re c
alcu
late
d us
ing
pers
onal
inco
me
and
popu
latio
n fo
r the
prio
r cal
enda
r yea
r.
bIn
clud
es E
arly
Ret
irem
ent I
ncen
tive
Plan
(ER
IP) r
efun
ding
Gov
ernm
enta
l Act
iviti
es
Fair
view
Boa
rd o
f Edu
catio
nR
atio
s of O
utst
andi
ng D
ebt b
y T
ype
Las
t Ten
Fis
cal Y
ears
-106-
Exh
ibit
J-11
Fisc
al
Yea
r En
ded
June
30,
Gen
eral
O
blig
atio
n B
onds
/Loa
nsD
educ
tions
Net
Gen
eral
B
onde
d D
ebt
Out
stan
ding
Perc
enta
ge o
f A
ctua
l Ta
xabl
e V
alue
a o
f Pro
perty
Per C
apita
b
2006
2,35
9,24
4$
72
0,00
0
1,
639,
244
0.26
%26
$
2007
2,13
2,12
2$
67
5,00
0
1,
457,
122
0.23
%22
$
2008
1,89
9,12
4$
63
0,00
0
1,
269,
124
0.20
%19
$
2009
1,65
4,90
2$
58
0,00
0
1,
074,
902
0.17
%17
$
2010
1,40
4,36
1$
53
0,00
0
87
4,36
1
0.08
%14
$
2011
1,14
2,01
4$
47
5,00
0
66
7,01
4
0.06
%10
$
2012
872,
509
$
42
0,00
0
45
2,50
9
0.04
%7
$
2013
590,
300
$
36
0,00
0
23
0,30
0
0.02
%3
$
2014
295,
000
$
29
5,00
0
-
0.
00%
Not
Ava
ilabl
e20
1522
5,00
0$
225,
000
-
Not
Ava
ilabl
eN
ot A
vaila
ble
Not
e:D
etai
ls re
gard
ing
the
dist
rict's
out
stan
ding
deb
t can
be
foun
d in
the
note
s to
the
finan
cial
stat
emen
ts.
aSe
e Ex
hibi
t NJ J
-6 fo
r pro
perty
tax
data
. b
Popu
latio
n da
ta c
an b
e fo
und
in E
xhib
it N
J J-1
4.
Gen
eral
Bon
ded
Deb
t Out
stan
ding
Fair
view
Boa
rd o
f Edu
catio
nR
atio
s of N
et G
ener
al B
onde
d D
ebt O
utst
andi
ngL
ast T
en F
isca
l Yea
rs
-107-
Exh
ibit
J-12
Gov
ernm
enta
l Uni
t
Estim
ated
Pe
rcen
tage
A
pplic
able
aD
ebt
Out
stan
ding
Estim
ated
Sha
re
of O
verla
ppin
g D
ebt
Dir
ect D
ebt o
f Sch
ool D
istr
ict a
s of J
une
30, 2
015
331,
866
$
N
et o
verl
appi
ng d
ebt o
f Sch
ool D
istr
ict:
B
orou
gh o
f Fai
rvie
w10
0.00
0%22
,350
,282
$
Cou
nty
of B
erge
n - C
ity's
Shar
e0.
685%
5,91
5,71
9$
Ber
gen
Cou
nty
Util
ity A
utho
rity-
City
's Sh
are
2.16
3%4,
671,
580
$
Su
btot
al, o
verl
appi
ng d
ebt
32,9
37,5
81$
Tot
al d
irec
t and
ove
rla p
ping
deb
t33
,269
,447
$
Sour
ces:
Bor
ough
of F
airv
iew
Adm
inis
trato
r / B
erge
n C
ount
y Tr
easu
rer's
Off
ice
Not
e:
Ove
rlapp
ing
gove
rnm
ents
are
thos
e th
at c
oinc
ide,
at l
east
in p
art,
with
the
geog
raph
ic b
ound
arie
s of t
he D
istri
ct.
This
sche
dule
est
imat
es th
e po
rtion
of t
he o
utst
andi
ng d
ebt o
f tho
se o
verla
ppin
g go
vern
men
ts th
at is
bor
ne b
y th
e re
side
nts a
nd
busi
ness
es o
f Fai
rvie
w.
This
pro
cess
reco
gniz
es th
at, w
hen
cons
ider
ing
the
Dis
trict
's ab
ility
to is
sue
and
repa
y lo
ng-te
rm d
ebt,
the
entir
e de
bt b
urde
n bo
rne
by th
e re
side
nts a
nd b
usin
esse
s sho
uld
be ta
ken
into
acc
ount
. H
owev
er th
is d
oes n
ot im
ply
that
ev
ery
taxp
ayer
is a
resi
dent
, and
ther
efor
e re
spon
sibl
e fo
r rep
ayin
g th
e de
bt, o
f eac
h ov
erla
ppin
g pa
ymen
t.
For
deb
t rep
aid
with
pro
perty
taxe
s, th
e pe
rcen
tage
of o
verla
ppin
g de
bt a
pplic
able
is e
stim
ated
usi
ng ta
xabl
e as
sess
ed p
rope
rty v
alue
s.A
pplic
able
per
cent
ages
wer
e es
timat
ed b
y de
term
inin
g th
e po
rtion
of a
noth
er g
over
nmen
tal u
nit's
taxa
ble
valu
e th
at is
with
in th
e di
stric
t's b
ound
arie
s and
div
idin
g it
by e
ach
unit'
s tot
al ta
xabl
e va
lue.
Fair
view
Boa
rd o
f Edu
catio
nR
atio
s of O
verl
appi
ng G
over
nmen
tal A
ctiv
ities
Deb
tA
s of J
une
30, 2
014
-108-
Exh
ibit
J-13
Leg
al D
ebt M
argi
n C
alcu
latio
n fo
r Fi
scal
Yea
r 20
14
Equa
lized
val
uatio
n ba
sis
2014
1,11
1,41
7,08
8$
2013
1,08
9,56
3,81
5$
2012
1,15
5,69
1,02
7$
[A]
2,24
5,25
4,84
2$
Ave
rage
equ
aliz
ed v
alua
tion
of ta
xabl
e pr
oper
ty[A
/3]
748,
418,
281
$
Deb
t lim
it (3
% o
f ave
rage
equ
aliz
atio
n va
lue)
[B]
22,4
52,5
48
aN
et b
onde
d sc
hool
deb
t[C
]-
Le
gal d
ebt m
argi
n[B
-C]
22,4
52,5
48$
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Deb
t lim
it28
,733
,312
$
32,9
04,5
65$
36
,358
,791
$
41,1
65,6
58
43,0
99,6
83
43,2
67,1
12
39,1
16,8
24
23,5
60,2
68
23
,537
,793
22,4
52,5
48
Tota
l net
deb
t app
licab
le to
lim
it1,
639,
244
1,
457,
122
1,26
9,12
4
1,07
4,90
2
874,
361
667,
014
452,
509
230,
300
-
-
Lega
l deb
t mar
gin
27,0
94,0
68$
31
,447
,443
$
35,0
89,6
67$
40
,090
,756
$
42
,225
,322
$
42
,600
,098
$
38
,664
,315
$
23
,329
,968
$
23,5
37,7
93$
22
,452
,548
$
Tota
l net
deb
t app
licab
le to
the
limit
as a
per
cent
age
of d
ebt l
imit
5.71
%4.
43%
3.49
%2.
61%
2.03
%1.
54%
1.16
%0.
98%
0.00
%0.
00%
Sour
ce:
Abs
tract
of R
atab
les a
nd D
istri
ct R
ecor
ds C
AFR
Sch
edul
e J-
7
Fair
view
Boa
rd o
f Edu
catio
nL
egal
Deb
t Mar
gin
Info
rmat
ion
Las
t Ten
Fis
cal Y
ears
-109-
Exh
ibit
J-14
Yea
rPo
pula
tion
a
Pers
onal
Inco
me
(thou
sand
s of
dolla
rs) b
Per C
apita
Pe
rson
al
Inco
me c
Une
mpl
oym
ent
Rat
e d
2006
13,3
44
84
2,04
6,43
2$
63,1
03
7.
20%
2007
13,4
00
90
5,08
9,60
0$
67,5
44
6.
50%
2008
13,4
83
90
7,82
3,87
3$
67,3
31
8.
30%
2009
13,5
90
86
8,04
7,66
0$
63,8
74
14
.50%
2010
13,8
47
88
4,61
5,59
5$
63,8
85
14
.80%
2011
13,9
69
93
9,38
7,31
2$
67,2
48
14
.60%
2012
14,1
83
98
2,61
2,42
3$
69,2
81
5.
00%
2013
14,2
62
99
1,13
7,69
0$
69,4
95
5.
00%
2014
14,3
17$
N
ot A
vaila
ble
Not
Ava
ilabl
e5.
40%
2015
Not
Ava
ilabl
eN
ot A
vaila
ble
Not
Ava
ilabl
eN
ot A
vaila
ble
Sour
ce:
a Pop
ulat
ion
info
rmat
ion
prov
ided
by
the
NJ D
ept o
f Lab
or a
nd W
orkf
orce
Dev
elop
men
tb
Pers
onal
inco
me
- Ber
gen
Cou
nty
- pro
vide
d by
NJ D
ept o
f Lab
or a
nd W
orkf
orce
Dev
elop
men
tc P
er C
apita
Per
sona
l Inc
ome
- Ber
gen
Cou
nty
- pro
vide
d by
NJ D
ept o
f Lab
or a
nd W
orkf
orce
Dev
elop
men
td
Une
mpl
oym
ent d
ata
prov
ided
by
the
NJ D
ept o
f Lab
or a
nd W
orkf
orce
Dev
elop
men
t
Fair
view
Boa
rd o
f Edu
catio
nD
emog
raph
ic a
nd E
cono
mic
Sta
tistic
sL
ast T
en F
isca
l Yea
rs
-110-
Exh
ibit
J-15
Em
ploy
erE
mpl
oyee
sR
ank
(Opt
iona
l)
Perc
enta
ge o
f T
otal
E
mpl
oym
ent
Em
ploy
ees
Ran
k (O
ptio
nal)
Perc
enta
ge o
f T
otal
E
mpl
oym
ent
THE
NEW
JER
SEY
DEP
AR
TMEN
T O
F LA
BO
R A
ND
AR
EA E
MPL
OY
ERS
REF
USE
DTO
REL
EASE
INFO
RM
ATI
ON
NEE
D T
O C
OM
PLET
E TH
IS S
CH
EDU
LE D
UE
TO
PRIV
AC
Y C
ON
CER
NS
Sour
ce:
Bor
ough
of F
airv
iew
** D
ata
was
onl
y pr
ovid
ed fo
r yea
rs n
oted
2006
2015
Fair
view
Boa
rd o
f Edu
catio
nPr
inci
pal E
mpl
oyer
sC
urre
nt Y
ear
and
Ten
Yea
rs A
go *
*
-111-
Exh
ibit
J-16
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Func
tion/
Prog
ram
Inst
ruct
ion
Reg
ular
62
64
6464
6160
6060
6169
Spec
ial e
duca
tion
21
21
2022
2221
2123
2427
Oth
er sp
ecia
l edu
catio
n-
-
-
-
-
-
-
-
-
-
V
ocat
iona
l-
-
-
-
-
-
-
-
-
-
O
ther
inst
ruct
ion
-
-
-
-
-
-
-
-
-
-
Non
publ
ic sc
hool
pro
gram
s-
-
-
-
-
-
-
-
-
-
A
dult/
cont
inui
ng e
duca
tion
prog
ram
s-
-
-
-
-
-
-
-
-
-
Supp
ort S
ervi
ces:
Tuiti
on-
-
-
-
-
-
-
-
-
-
St
uden
t & in
stru
ctio
n re
late
d se
rvic
es13
1313
1313
1313
1313
13G
ener
al a
dmin
sitra
tive
serv
ices
4
44
55
55
55
5Sc
hool
adm
inis
trativ
e se
rvic
es6
6
66
66
66
66
Bus
ines
s adm
insi
trativ
e se
rvic
es5
5
55
54
45
55
Plan
t ope
ratio
ns a
nd m
aint
enan
ce10
1010
99
66
86
7Pu
pil t
rans
porta
tion
-
-
-
-
-
-
-
-
35
Tota
l12
1
12
3
12
2
12
4
12
1
11
5
11
5
12
0
12
3
13
7
Sour
ce: D
istri
ct P
erso
nnel
Rec
ords
Fair
view
Boa
rd o
f Edu
catio
nFu
ll-tim
e E
quiv
alen
t Dis
tric
t Em
ploy
ees b
y Fu
nctio
n/Pr
ogra
m,
Las
t Ten
Fis
cal Y
ears
-112-
Exh
ibit
J-17
Fisc
al
Yea
rE
nrol
lmen
tO
pera
ting
Exp
endi
ture
s aC
ost P
er
Pupi
lPe
rcen
tage
C
hang
eT
each
ing
Staf
f bE
lem
enta
ryM
iddl
e Sc
hool
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rage
D
aily
E
nrol
lmen
t (A
DE
) c
Ave
rage
Dai
ly
Att
enda
nce
(AD
A) c
% C
hang
e in
A
vera
ge D
aily
E
nrol
lmen
t
Stud
ent
Att
enda
nce
Perc
enta
ge
2006
1,0
13
17,4
12,7
80
17,
189
2.56
%86
1:12
1
,013
936
30
.00%
92.4
0%20
07
1
,005
19
,063
,378
1
8,96
9 10
.35%
891:
11
1,0
05
9
42
-0.5
0%93
.73%
2008
1,0
51
19,3
32,6
39
18,
395
-3.0
3%88
1:12
1
,051
986
3.
75%
93.8
2%20
09
1
,043
21
,021
,034
2
0,15
4 9.
57%
861:
12
1,0
43
9
81
-0.7
6%94
.06%
2010
1,1
15
21,4
24,3
00
19,
215
-4.6
6%83
1:13
1
,115
1
,062
6.
90%
95.2
5%20
11
1
,148
21
,027
,655
1
8,31
7 -4
.67%
811:
14
1,1
39
1,0
83
2.15
%95
.08%
2012
1,1
96
20,7
31,7
25
17,
334
-5.3
6%81
1:15
1
,183
1
,125
3.
86%
95.1
0%20
13
1
,205
22
,859
,505
1
8,97
1 9.
44%
831:
15
1,2
05
1,1
43
1.86
%94
.85%
2014
1,2
70
23,1
16,6
51
18,
202
-4.0
5%83
1:15
1
,271
1
,205
5.
48%
94.8
1%20
15
1
,311
24
,217
,332
1
8,47
2 1.
49%
981:
13
1,3
04
1,2
38
2.60
%94
.94%
Sour
ces:
D
istri
ct re
cord
s, A
SSA
and
Sch
edul
es J-
4
Not
e: E
nrol
lmen
t bas
ed o
n an
nual
Oct
ober
dis
trict
cou
nt fo
r all
stud
ents
atte
ndin
g sc
hool
faci
litie
s
aO
pera
ting
expe
nditu
res e
qual
tota
l gen
eral
fund
and
spec
ial r
even
ue fu
nd e
xpen
ditu
res l
ess d
ebt s
ervi
ce a
nd c
apita
l out
lay;
Sch
edul
e J-
4b
Teac
hing
staf
f inc
lude
s onl
y fu
ll-tim
e eq
uiva
lent
s of c
ertif
icat
ed st
aff.
cA
vera
ge d
aily
enr
ollm
ent a
nd a
vera
ge d
aily
atte
ndan
ce a
re o
btai
ned
from
the
Scho
ol R
egis
ter S
umm
ary
(SR
S).
Pupi
l/Tea
cher
Rat
io
Fair
view
Boa
rd o
f Edu
catio
nO
pera
ting
Stat
istic
sL
ast T
en F
isca
l Yea
rs
-113-
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Dis
tric
t Bui
ldin
gs
Ele
men
tary
Linc
oln
Scho
olSq
uare
Fee
t53
,472
53,4
72
53
,472
53,4
72
53
,472
53,4
72
53
,472
53,4
72
53
,472
53,4
72
C
apac
ity (s
tude
nts)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Enro
llmen
tN
/A50
5
50
4
51
8
56
2
57
7
57
3
57
3
60
2
59
2
Linc
oln
Scho
ol A
nnex
Squa
re F
eet
14,8
10
14
,810
14,8
10
14
,810
14,8
10
14
,810
14,8
10
14
,810
14,8
10
14
,810
Cap
acity
(stu
dent
s)N
/AN
/AN
/AN
/AN
/AN
/AN
/AN
/AN
/AN
/AEn
rollm
ent
N/A
200
195
186
206
227
209
206
213
220
Num
ber 3
Sch
ool
23,3
72
23
,372
23,3
72
23
,372
23,3
72
23
,372
23,3
72
23
,372
23,3
72
23
,372
Squa
re F
eet
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Cap
acity
(stu
dent
s)N
/A35
0
34
0
33
9
35
6
34
4
43
5
42
6
45
5
48
4
En
rollm
ent
Num
ber o
f Sch
ools
at J
une
30, 2
015
Elem
enta
ry =
2M
iddl
e Sc
hool
= 1
Sour
ce: D
istri
ct re
cord
s, A
SSA
Not
e: E
nrol
lmen
t is b
ased
on
stud
ents
' enr
olle
d w
ithin
the
Dis
trict
-- o
ut o
f dis
trict
stud
ents
hav
e no
t bee
n in
clud
ed
Exh
ibit
J-18
Fair
view
Boa
rd o
f Edu
catio
nSc
hool
Bui
ldin
g In
form
atio
nL
ast T
en F
isca
l Yea
rs
-114-
Exh
ibit
J-19
Fair
view
Boa
rd o
f Edu
catio
nG
ener
al F
und
Sche
dule
of R
equi
red
Man
tena
nce
for
Scho
ol F
acili
ties
Las
t Ten
Fis
cal Y
ears
Una
udite
d
Scho
ol F
acili
ties
Proj
ect #
(s)
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Linc
oln
Scho
olN
/A10
3,76
6
108,
189
105,
337
103,
126
106,
005
82,1
43
100,
306
14
7,15
4
12
3,98
4
13
1,58
2
Ann
exN
/A14
,135
9,46
1
6,59
3
19,4
87
12
,655
17,1
17
26,0
98
9,12
3
8,86
6
12,4
09
Sc
hool
No.
3N
/A7,
826
9,
500
18
,102
18,1
39
17
,991
19,5
48
21,3
96
34,6
01
25,1
98
22,1
49
Tota
l Sch
ool F
acili
ties
125,
727
12
7,15
0
13
0,03
2
14
0,75
2
13
6,65
1
11
8,80
8
147,
800
19
0,87
8
15
8,04
8
16
6,14
0
Oth
er F
acili
ties
Gra
nd T
otal
125,
727
$
12
7,15
0$
13
0,03
2$
14
0,75
2$
13
6,65
1$
11
8,80
8$
147,
800
$
19
0,87
8$
15
8,04
8$
16
6,14
0$
UN
DIS
TRIB
UTE
D E
XPE
ND
ITU
RES
- R
EQU
IRED
MA
INTE
NA
NC
E FO
R S
CH
OO
L FA
CIL
ITIE
S11
-000
-261
-XX
X
-115-
Exhibit J-20Fairview Board of Education
Insurance ScheduleFor the Fiscal Year Ended June 30, 2015
Unaudited
Company Coverage Deductible
School package policy - Property - Blanket Building and Contents 22,345,312$ 5,000$ Comprehensive General Liability 16,000,000 Comprehensive Automobile Liability 16,000,000 Comprehensive Crime Coverage 25,000 500
Computers and schedule equipment - Data Processing Equipment 125,000 1,000
Boiler and machinery -Umbrella policy 100,000,000 5,000
School Board legal liability -Directors and officers policy 16,000,000 5,000
Public Employees' Faithful Performance Blanket
Position Bond - Board Secretary 25,000 1,000
Pollution - Environmental Package 1,000,000 10,000
Source: District Records
Type of Coverage
-116-
SINGLE AUDIT SECTION
Ferraioli, Wielkotz, Cerullo & Cuva, P.A.
Charles J. Ferraioli, Jr., MBA, CPA, RMA Certified Public Accountants Newton Office Steven D. Wielkotz, CPA, RMA 401 Wanaque Avenue 100B Main Street James J. Cerullo, CPA, RMA Pompton Lakes, New Jersey 07442 Newton, NJ 07860Paul J. Cuva, CPA, RMA 973-835-7900 973-579-3212Thomas M. Ferry, CPA, RMA Fax 973-835-6631 Fax 973-579-7128
K-1
Page 1 of 2
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Honorable President and
Members of the Board of Education
Fairview Board of Education
Fairview, New Jersey
We have audited, in accordance with auditing standards generally accepted in the United States of
America; audit requirements as prescribed by the Office of School Finance, Department of Education,
State of New Jersey; and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States, the financial statements of the
governmental activities, the business-type activities and each major fund and the aggregate remaining
fund information of the Fairview Board of Education, in the County of Bergen, State of New Jersey, as
of and for the year ended June 30, 2015, and the related notes to the financial statements, which
collectively comprise the District’s basic financial statements, and have issued our report thereon dated
November 9, 2015.
Internal Control Over Financial Reporting
In planning and performing our audit on the financial statements, we considered the Fairview Board of
Education’s internal control over financial reporting (internal control) to determine the audit procedures
that are appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the Fairview Board
of Education’s internal control. Accordingly, we do not express an opinion on the effectiveness of the
Fairview Board of Education’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control, such that there is a reasonable possibility that a material
misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a
timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal
control that is less severe than a material weakness, yet important enough to merit attention by those
charged with governance.
-117-
Honorable President and K-1
Members of the Board of Education Page 2 of 2
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Fairview Board of Education’s financial
statements are free of material misstatement, we performed tests of its compliance with certain
provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a
direct and material effect on the determination of financial statement amounts. However, providing an
opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do
not express such an opinion. The results of our tests disclosed no instances of noncompliance or other
matters that are required to be reported under Government Auditing Standards or the audit requirements
as prescribed by the Office of School Finance, Department of Education, State of New Jersey.
We noted certain matters that were required to be reported to the Fairview Board of Education in the
separate Auditors’ Management Report on Administrative Findings - Financial, Compliance and
Performance dated November 9, 2015.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
entity’s internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the entity’s internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
Steven D. WielkotzSteven D. WielkotzSteven D. WielkotzSteven D. Wielkotz
Steven D. Wielkotz, C.P.A.
Licensed Public School Accountant
No. 816
Ferraioli, Wielkotz, Cerullo & Cuva, P.A.Ferraioli, Wielkotz, Cerullo & Cuva, P.A.Ferraioli, Wielkotz, Cerullo & Cuva, P.A.Ferraioli, Wielkotz, Cerullo & Cuva, P.A.
FERRAIOLI, WIELKOTZ, CERULLO & CUVA, P.A.
Certified Public Accountants
Pompton Lakes, New Jersey
November 9, 2015
-118-
Ferraioli, Wielkotz, Cerullo & Cuva, P.A.
Charles J. Ferraioli, Jr., MBA, CPA, RMA Certified Public Accountants Newton Office Steven D. Wielkotz, CPA, RMA 401 Wanaque Avenue 100B Main Street James J. Cerullo, CPA, RMA Pompton Lakes, New Jersey 07442 Newton, NJ 07860Paul J. Cuva, CPA, RMA 973-835-7900 973-579-3212Thomas M. Ferry, CPA, RMA Fax 973-835-6631 Fax 973-579-7128
K-2
Page 1 of 3
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH REQUIREMENTS
APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL
CONTROL OVER COMPLIANCE IN ACCORDANCE WITH
OMB CIRCULAR A-133 AND N.J. OMB CIRCULAR 04-04
Honorable President and
Members of the Board of Education
Fairview Board of Education
Fairview, New Jersey
Report on Compliance for Each Major Federal and State Program
We have audited the Fairview Board of Education, in the County of Bergen, State of New Jersey,
compliance with the types of compliance requirements described in the OMB Circular A-133
Compliance Supplements and the New Jersey State Aid/Grant Compliance Supplement that could have a
direct and material effect on each of the Fairview Board of Education’s major federal and state
programs for the year ended June 30, 2015. The Fairview Board of Education’s major federal and state
programs are identified in the summary of auditor’s results section of the accompanying schedule of
findings and questioned costs.
Management’s Responsibility
Management is responsible for compliance with the requirements of laws, regulations, contracts, and
grants applicable to its federal and state programs.
Auditor’s Responsibility
Our responsibility is to express an opinion on compliance for each of the Fairview Board of Education’s
major federal and state programs based on our audit of the types of compliance requirements referred to
above. We conducted our audit of compliance in accordance with auditing standards generally accepted
in the United States of America; the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133,
Audits of States, Local Governments, and Non-Profit Organizations and Single Audit Policy for
Recipients of Federal Grants, State Grants and State Aid. Those standards, OMB Circular A-133 and
N.J. OMB Circular 04-04 require that we plan and perform the audit to obtain reasonable assurance
-119-
Honorable President and K-2
Members of the Board of Education Page 2 of 3
about whether noncompliance with the types of compliance requirements referred to above that could
have a direct and material effect on a major federal and state program occurred. An audit includes
examining, on a test basis, evidence about the Fairview Board of Education’s compliance with those
requirements and performing such other procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major
federal and state program. However, our audit does not provide a legal determination of the Fairview
Board of Education’s compliance.
Opinion on Each Major Federal and State Program
In our opinion, the Fairview Board of Education complied, in all material respects, with the types of
compliance requirements referred to above that could have a direct and material effect on each of its
major federal and state programs for the year ended June 30, 2015.
Report on Internal Control Over Compliance
Management of the Fairview Board of Education is responsible for establishing and maintaining
effective internal control over compliance with the types of compliance requirements referred to above.
In planning and performing our audit of compliance, we considered the Fairview Board of Education’s
internal control over compliance with the type of requirements that could have a direct and material
effect on each major federal and state program to determine the auditing procedures that are appropriate
in the circumstances for the purpose of expressing an opinion on compliance for each major federal and
state program and to test and report on internal control over compliance in accordance with OMB
Circular A-133 and N.J. OMB Circular 04-04, but not for the purpose of expressing an opinion on the
effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the
effectiveness of Fairview Board of Education’s internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their
assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance
requirement of a federal and state program on a timely basis. A material weakness in internal control
over compliance is a deficiency, or combination of deficiencies, in internal control over compliance,
such that there is a reasonable possibility that material noncompliance with a type of compliance
requirement of a federal and state program will not be prevented, or detected and corrected, on a timely
basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of
deficiencies, in internal control over compliance with a type of compliance requirement of a federal and
state program that is less severe than a material weakness in internal control over compliance, yet
important enough to merit attention by those charged with governance.
-120-
Honorable President and K-2
Members of the Board of Education Page 3 of 3
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over
compliance that might be material weaknesses or significant deficiencies. We did not identify any
deficiencies in internal control over compliance that we consider to be material weaknesses. However,
material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of
OMB Circular A-133 and N.J. OMB Circular 04-04. Accordingly, this report is not suitable for any
other purpose.
Report on Schedule of Expenditures of Federal and State Awards Required by OMB Circular A-
133
We have audited the financial statements of the Fairview Board of Education as of and for the year
ended June 30, 2015, and have issued our report there dated November 9, 2015 which contained an
unmodified opinion on those financial statements. Our audit was conducted for the purpose of forming
an opinion on the financial statements as a whole. The accompanying schedule of expenditures of
federal and state awards is presented for purposes of additional analysis as required by OMB Circular
A-133 and N.J. OMB Circular 04-04 and is not a required part of the financial statements. Such
information is the responsibility of management and was derived from and relates directly to the
underlying accounting and other records used to prepare the financial statements. The information has
been subjected to the auditing procedures applied in the audit of the financial statements and certain
additional procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the financial statements or to the financial statements
themselves, and other additional procedures in accordance with auditing standards generally accepted in
the United States of America. In our opinion, the schedule of expenditure of federal and state awards is
fairly stated in all material respects in relation to the financial statements as a whole.
Steven D. WielkotzSteven D. WielkotzSteven D. WielkotzSteven D. Wielkotz
Steven D. Wielkotz, C.P.A.
Licensed Public School Accountant
No. 816
Ferraioli, Wielkotz, Cerullo & Cuva, P.A.Ferraioli, Wielkotz, Cerullo & Cuva, P.A.Ferraioli, Wielkotz, Cerullo & Cuva, P.A.Ferraioli, Wielkotz, Cerullo & Cuva, P.A.
FERRAIOLI, WIELKOTZ, CERULLO & CUVA, P.A.
Certified Public Accountants
Pompton Lakes, New Jersey
November 9, 2015
-121-
Sche
dule
AK
-31
of 3
ME
MO
Rep
aym
ent
Def
erre
dC
umul
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r R
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ue/
Tota
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s-th
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h G
rant
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rant
Aw
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June
30,
Car
ryov
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ash
Bud
geta
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ears
'(A
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nts
Inte
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Pass
ed-th
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ate
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atio
nal S
choo
l Lun
ch P
rogr
am10
.555
7/1/
14-6
/30/
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278,
178
251,
369
278,
178
(26,
809)
*27
8,17
8N
atio
nal S
choo
l Lun
ch P
rogr
am10
.555
7/1/
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/30/
1431
7,60
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7,60
4N
atio
nal B
reak
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Pro
gram
10.5
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33,5
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)*
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atio
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fast
Pro
gram
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537/
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tal U
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epar
tmen
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gric
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368
*U
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epar
tmen
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duca
tion
*G
ener
al F
und:
*M
AC
93.7
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420
420
420
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0A
RR
A -
Med
ical
Ass
ista
nce
Prog
ram
(SEM
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726
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(62,
266)
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l Gen
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Fun
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,542
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*Pa
ssed
-thro
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e D
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ecia
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Fun
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Title
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rt A
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prov
ing
Bas
ic P
rogr
ams
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(303
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(72,
752)
*71
8,87
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Part
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mpr
ovin
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9,60
6(3
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6,89
7(3
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949,
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2,75
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1,66
5,77
6*
I.D.E
.A. P
art B
84.0
277/
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377,
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*37
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3I.D
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. Par
t B84
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.367
A7/
1/14
-6/3
0/15
55,4
98(4
,205
)39
,225
55,0
36(2
0,01
6)*
55,0
36Ti
tle II
Par
t A84
.367
A7/
1/13
-6/3
0/14
53,1
44(4
,205
)4,
205
*47
,933
(4,2
05)
39,2
2555
,036
(20,
016)
*10
2,96
9*
Title
III
84.3
65A
7/1/
14-6
/30/
1549
,135
(2,0
29)
22,8
7451
,799
(30,
954)
*51
,799
Title
III
84.3
65A
7/1/
13-6
/30/
1433
,984
(2,0
29)
2,02
9*
21,9
08Ti
tle II
I, Im
mig
rant
84.3
65A
7/1/
13-6
/30/
1414
,985
(6,2
88)
6,28
81,
643
1,64
3*
41,5
95(8
,317
)29
,162
51,7
991,
643
(30,
954)
1,64
3*
115,
302
*To
tal S
peci
al R
even
ue F
und
(322
,568
)1,
387,
510
1,23
2,27
423
,030
(145
,945
)1,
643
*2,
703,
024
*To
tal F
eder
al F
inan
cial
Ass
ista
nce
$(4
23,2
46)
1,78
8,72
81,
584,
662
23,0
30(1
97,7
93)
1,64
3*
3,51
0,94
3
See
acco
mpa
nyin
g no
tes t
o sc
hedu
les o
f exp
endi
ture
s of f
eder
al a
nd st
ate
awar
ds.
FAIR
VIE
WB
OA
RD
OF
ED
UC
AT
ION
Sche
dule
of E
xpen
ditu
res o
f Fed
eral
Aw
ards
Yea
r en
ded
June
30,
201
5
Bal
ance
at J
une
30, 2
015
-122-
Sche
dule
BK
-41
of 3
Bal
ance
at J
une
30, 2
014
Bal
ance
at J
une
30, 2
015
ME
MO
Gra
nt o
rR
epay
men
tD
efer
red
Stat
eD
efer
red
of P
rior
Rev
enue
/C
umul
ativ
ePr
ojec
tG
rant
Aw
ard
Rev
enue
Due
to
Car
ryov
erC
ash
Bud
geta
ryY
ears
'(A
ccou
nts
Inte
rfun
dD
ue to
Bud
geta
ryTo
tal
Stat
e G
rant
or/P
rogr
am T
itle
Num
ber
Perio
dA
mou
nt(A
ccts
Rec
eiva
ble)
Gra
ntor
Am
ount
Rec
eive
dEx
pend
iture
sA
djus
tmen
tsB
alan
ces
Rec
eiva
ble)
Paya
ble
Gra
ntor
Rec
eiva
ble
Expe
nditu
res
Stat
e D
epar
tmen
t of E
duca
tion:
Gen
eral
Fun
d:Eq
ualiz
atio
n A
id49
5-03
4-51
20-0
787/
1/14
-6/3
0/15
5,84
2,25
45,
291,
627
5,84
2,25
4*
(550
,627
)5,
842,
254
Tran
spor
tatio
n A
id49
5-03
4-51
20-0
147/
1/14
-6/3
0/15
31,1
2228
,189
31,1
22*
(2,9
33)
31,1
22Sp
ecia
l Edu
catio
n A
id49
5-03
4-51
20-0
897/
1/14
-6/3
0/15
947,
543
858,
238
947,
543
*(8
9,30
5)94
7,54
3Se
curit
y A
id49
5-03
4-51
20-0
847/
1/14
-6/3
0/15
109,
205
98,9
1310
9,20
5*
(10,
292)
109,
205
Und
er A
dequ
acy
Aid
495-
034-
5120
-096
7/1/
14-6
/30/
1542
8,90
538
8,48
142
8,90
5*
(40,
424)
428,
905
PAR
CC
Rea
dine
ss A
id49
5-03
4-51
20-0
987/
1/14
-6/3
0/15
17,3
1015
,678
17,3
10*
(1,6
32)
17,3
10Pe
r Pup
il G
row
th A
id49
5-03
4-51
20-0
977/
1/14
-6/3
0/15
17,3
1015
,678
17,3
10*
(1,6
32)
17,3
10N
TE H
omel
ess R
eim
burs
emen
t10
0-02
9-60
60-0
347/
1/14
-6/3
0/15
226,
730
226,
730
(226
,730
)*
226,
730
NTE
Hom
eles
s Rei
mbu
rsem
ent
100-
029-
6060
-034
7/1/
13-6
/30/
1452
,782
(52,
782)
52,7
82*
52,7
82Ex
traor
dina
ry A
id10
0-03
4-51
20-4
737/
1/14
-6/3
0/15
154,
500
154,
500
(154
,500
)*
154,
500
Extra
ordi
nary
Aid
100-
034-
5120
-473
7/1/
13-6
/30/
1414
1,69
3(1
41,6
93)
141,
693
*14
1,69
3R
eim
burs
ed T
PAF
Soci
al S
ecur
ity49
5-03
4-50
94-0
037/
1/14
-6/3
0/15
521,
112
495,
002
521,
112
(26,
110)
*52
1,11
2R
eim
burs
ed T
PAF
Soci
al S
ecur
ity49
5-03
4-50
94-0
037/
1/13
-6/3
0/14
566,
215
(73,
688)
73,6
88*
73,6
88*
Tota
l Gen
eral
Fun
d(2
68,1
63)
7,45
9,96
98,
295,
991
(407
,340
)*
(696
,845
)8,
564,
154
*Sp
ecia
l Rev
enue
Fun
d:*
Pres
choo
l Edu
catio
n A
id49
5-03
4-51
20-0
867/
1/14
-6/3
0/15
108,
410
97,5
6910
8,69
441
613
2*
(10,
841)
108,
278
Non
publ
ic T
ext C
hapt
er 1
9410
0-03
4-52
10-0
647/
1/14
-6/3
0/15
17,9
3417
,934
17,9
304
*17
,930
Non
publ
ic T
ext C
hapt
er 1
9410
0-03
4-52
10-0
647/
1/13
-6/3
0/14
15,0
295
5*
15,0
24C
hapt
er 1
92 -
Com
pens
ator
y Ed
ucat
ion
100-
034-
5120
-067
7/1/
14-6
/30/
1511
8,24
511
8,24
511
6,18
52,
060
*11
6,18
5C
hapt
er 1
92 -
Com
pens
ator
y Ed
ucat
ion
100-
034-
5120
-067
7/1/
13-6
/30/
1486
,539
2,48
22,
482
*84
,057
Cha
pter
192
- ES
L10
0-03
4-51
20-0
677/
1/14
-6/3
0/15
14,4
3414
,434
12,1
502,
284
*12
,150
Cha
pter
192
- ES
L10
0-03
4-51
20-0
677/
1/13
-6/3
0/14
16,6
7234
934
9*
16,3
23C
hapt
er 1
93 -
Supp
lem
enta
l Ins
truct
ion
100-
034-
5120
-066
7/1/
14-6
/30/
1512
,476
12,4
769,
730
2,74
6*
9,73
0C
hapt
er 1
93 -
Supp
lem
enta
l Ins
truct
ion
100-
034-
5120
-066
7/1/
13-6
/30/
1411
,102
2,91
52,
915
*8,
187
Cha
pter
193
- Ex
amin
atio
n an
d C
lass
ifica
tion
100-
034-
5120
-066
7/1/
14-6
/30/
1517
,837
17,8
3716
,754
1,08
3*
16,7
54C
hapt
er 1
93 -
Exam
inat
ion
and
Cla
ssifi
catio
n10
0-03
4-51
20-0
667/
1/13
-6/3
0/14
19,9
0263
963
9*
19,2
63C
hapt
er 1
93 -
Cor
rect
ive
Spee
ch10
0-03
4-51
20-0
667/
1/14
-6/3
0/15
27,2
1227
,212
24,1
203,
092
*24
,120
Cha
pter
193
- C
orre
ctiv
e Sp
eech
100-
034-
5120
-066
7/1/
13-6
/30/
1425
,545
5,85
95,
859
*19
,686
Non
publ
ic N
ursi
ng10
0-03
4-51
20-0
707/
1/14
-6/3
0/15
28,5
5028
,550
28,5
50*
28,5
50N
onpu
blic
Nur
sing
100-
034-
5120
-070
7/1/
13-6
/30/
1421
,153
*21
,153
Non
Pub
lic T
echn
olog
y G
rant
100-
034-
5120
-373
7/1/
14-6
/30/
159,
632
9,63
28,
954
678
*8,
954
*To
tal S
peci
al R
even
ue F
und
12,2
4934
3,88
934
3,06
741
612
,249
132
11,9
47*
(10,
841)
526,
344
*C
apita
l Pro
ject
s Fun
d*
Linc
oln
Scho
ol W
indo
w R
epla
cem
ent
1470
-060
-14-
1001
7/1/
14-6
/30/
1521
3,95
821
3,95
8(2
13,9
58)
*21
3,95
8*
Tota
l Cap
ital P
roje
cts F
und
213,
958
(213
,958
)*
213,
958
*En
terp
rise
Fund
:*
Nat
iona
l Sch
ool L
unch
Pro
gram
(Sta
te S
hare
)10
0-01
0-33
50-0
237/
1/14
-6/3
0/15
5,36
54,
713
5,36
5(6
52)
*5,
365
Nat
iona
l Sch
ool L
unch
Pro
gram
(Sta
te S
hare
)10
0-01
0-33
50-0
237/
1/13
-6/3
0/14
6,54
0(1
,020
)1,
020
*6,
540
*To
tal E
nter
pris
e Fu
nd(1
,020
)5,
733
5,36
5(6
52)
*11
,905
*To
tal S
tate
Fin
anci
al A
ssis
tanc
e Su
bjec
t to
OM
B 0
4-04
(269
,183
)12
,249
7,80
9,59
18,
858,
381
416
12,2
49(6
21,9
50)
132
11,9
47*
(707
,686
)9,
316,
361
On
Beh
alf T
PAF
Con
tribu
tions
Not
Sub
ject
to O
MB
04-
04O
n-B
ehal
f TPA
F - P
ost R
etire
men
t Med
ical
495-
034-
5094
-001
7/1/
14-6
/30/
1555
4,21
955
4,21
955
4,21
9*
554,
219
On-
Beh
alf T
PAF
Pens
ion
495-
034-
5094
-006
7/1/
14-6
/30/
1532
5,68
332
5,68
332
5,68
3*
325,
683
On-
Beh
alf T
PAF
NC
GI P
rem
ium
495-
034-
5094
-007
7/1/
14-6
/30/
1523
,431
23,4
3123
,431
*23
,431
Tota
l Sta
te F
inan
cial
Ass
ista
nce
(269
,183
)12
,249
8,71
2,92
49,
761,
714
416
12,2
49(6
21,9
50)
132
11,9
47(7
07,6
86)
10,2
19,6
94
FAIR
VIE
WB
OA
RD
OF
ED
UC
AT
ION
Sche
dule
of E
xpen
ditu
res o
f Sta
te A
war
ds a
nd O
ther
Loc
al A
war
ds
Yea
r en
ded
June
30,
201
5
-123-
Sche
dule
BK
-42
of 3
Bal
ance
at J
une
30, 2
014
Bal
ance
at J
une
30, 2
015
ME
MO
Gra
nt o
rR
epay
men
tD
efer
red
Stat
eD
efer
red
of P
rior
Rev
enue
/C
umul
ativ
ePr
ojec
tG
rant
Aw
ard
Rev
enue
Due
to
Car
ryov
erC
ash
Bud
geta
ryY
ears
'(A
ccou
nts
Inte
rfun
dD
ue to
Bud
geta
ryTo
tal
Stat
e G
rant
or/P
rogr
am T
itle
Num
ber
Perio
dA
mou
nt(A
ccts
Rec
eiva
ble)
Gra
ntor
Am
ount
Rec
eive
dEx
pend
iture
sA
djus
tmen
tsB
alan
ces
Rec
eiva
ble)
Paya
ble
Gra
ntor
Rec
eiva
ble
Expe
nditu
res
FAIR
VIE
WB
OA
RD
OF
ED
UC
AT
ION
Sche
dule
of E
xpen
ditu
res o
f Sta
te A
war
ds a
nd O
ther
Loc
al A
war
ds
Yea
r en
ded
June
30,
201
5
Loca
l Sou
rces
:*
Spec
ial R
even
ue F
und:
*LO
WES
Gra
ntN
/A7/
1/14
-6/3
0/15
5,00
05,
000
5,00
0*
5,00
0N
JSB
Safe
ty G
rant
N/A
7/1/
14-6
/30/
156,
123
6,12
36,
123
*6,
123
*To
tal L
ocal
Sou
rces
6,12
311
,123
5,00
0*
11,1
23*
Tota
l Sta
te a
nd L
ocal
Fin
anci
al A
ssis
tanc
e$
(269
,183
)12
,249
8,71
9,04
79,
772,
837
5,41
612
,249
(621
,950
)13
211
,947
(707
,686
)10
,230
,817
See
acco
mpa
nyin
g no
tes t
o sc
hedu
les o
f exp
endi
ture
s of f
eder
al a
nd st
ate
awar
ds.
-124-
Fairview Board of Education K-5Notes to the Schedules of Expenditures of Federal Awards and Page 1 of 2 State Financial Assistance June 30, 2015
NOTE 1. GENERAL
The accompanying Schedules of Expenditures of Federal Awards and State Financial Assistance includethe activity of all federal and state award programs of the Fairview Board of Education. The Board ofEducation is defined in Note 1 to the Board's basic financial statements. All federal and state awardsreceived directly from federal and state agencies, as well as federal and state awards passed through othergovernment agencies is included on the Schedules of Expenditures of Federal Awards and State FinancialAssistance.
NOTE 2. BASIS OF ACCOUNTING
The accompanying Schedules of Expenditures of Federal Awards and State Financial Assistance arepresented on the budgetary basis of accounting with the exception of programs recorded in the food servicefund, which are presented using the accrual basis of accounting. These bases of accounting are describedin Notes 2(C) and 2(D) to the Board's basic financial statements. The information in these schedules ispresented in accordance with the requirements of OMB Circular A-133, “Audits of States, LocalGovernments, and Non-Profit Organizations.” Therefore, some amounts presented in this schedule maydiffer in amounts presented in or used in the preparation of the basic financial statements.
NOTE 3. RELATIONSHIP TO BASIC FINANCIAL STATEMENTS
The basic financial statements present the general fund and the special revenue fund on a GAAP basis. Budgetary comparison statements or schedules (RSI) are presented for the general fund and special revenuefund to demonstrate finance-related legal compliance in which certain revenue is permitted by law or grantagreement to be recognized in the audit year, whereas for GAAP reporting, revenue is not recognized untilthe subsequent year or when expenditures have been made.
The general fund is presented in the accompanying schedules on the modified accrual basis with theexception of the revenue recognition of the last state aid payment in the current budget year, which ismandated pursuant to N.J.S.A. 18A:22-44.2. For GAAP purposes, that payment is not recognized until thesubsequent budget year due to the state deferral and recording of the last state aid payment in the subsequentyear. The special revenue fund is presented in the accompanying schedules on the grant accountingbudgetary basis which recognizes encumbrances as expenditures and also recognizes the related revenues,whereas the GAAP basis does not. The special revenue fund also recognizes the last state aid payment inthe current budget year, consistent with N.J.S.A. 18A:22-44.2.
-125-
Fairview Board of Education K-5Notes to the Schedules of Expenditures of Federal Awards and Page 2 of 2 State Financial AssistanceJune 30, 2015
NOTE 3. RELATIONSHIP TO BASIC FINANCIAL STATEMENTS, (continued)
The net adjustment to reconcile from the budgetary basis to the GAAP basis is $(3,296) for the general fundand $22,322 for the special revenue fund. See Notes to Required Supplemental Information for areconciliation of the budgetary basis to the modified accrual basis of accounting for the general and specialrevenue funds. Awards and financial assistance revenues are reported in the Board’s financial statementson a GAAP basis as follows:
Federal State Local Total
General Fund $40,663 $9196028 $ $9,236,691
Special Revenue Fund 1,232,273 343,067 5,000 1,580,340
Capital Projects Fund 213,958 213,958
Food Service Fund 311,725 5,365 317,090
Total Awards and Financial Assistance $1,584,661 $9,758,418 $5,000 $11,348,079
NOTE 4. RELATIONSHIP TO FEDERAL AND STATE FINANCIAL REPORTS
Amounts reported in the accompanying schedules agree with the amounts reported in the related federal andstate financial reports.
NOTE 5. OTHER
Revenues and expenditures reported under the U.S.D.A. Commodities Program represent current year valuereceived and current year distributions respectively.
The amount reported as TPAF Pension Contributions represents the amount paid by the state on behalf ofthe District for the year ended June 30, 2015. The amount reported as TPAF Social Security Contributionsrepresents the amount reimbursed by the state for the employer's share of social security contributions forTPAF members for the year ended June 30, 2015.
NOTE 6. ON-BEHALF PROGRAMS NOT SUBJECT TO STATE SINGLE AUDIT
On-behalf State Programs for TPAF Pension and Post-Retirement Medical Benefits Contributions are notsubject to a State single audit and, therefore, the amount of $903,333 of on-behalf payments is excludedfrom major program determination.
-126-
K-6Page 1 of 3
FAIRVIEW BOARD OF EDUCATIONSCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2015
Section I - Summary of Auditor’s Results
Financial Statements
Type of auditor’s report issued: unmodified
Internal control over financial reporting:
1. Material weakness(es) identified? yes X no
2. Significant deficiencies identified that arenot considered to be material weaknesses? yes X none reported
Noncompliance material to basic financialstatements noted? yes X no
Federal Awards
Internal Control over major programs:
1. Material weakness(es) identified? yes X no
2. Significant deficiencies identified that are not considered to be material weaknesses? yes X none reported
Type of auditor’s report issued on compliance for major programs: unmodified
Any audit findings disclosed that are required to be reported in accordance with section .510(a) of Circular A-133? yes X no
Identification of major programs:
CFDA Number(s) Name of Federal Program or Cluster
84.027/84.173 (A) IDEA Part B Basic/IDEA Part B Preschool
10.555/10.553 (A) National School Lunch Program/National
School Breakfast Program
Dollar threshold used to distinguish between type A and type B programs: $300,000
Auditee qualified as low-risk auditee? X yes no
Note: (A) Tested as Major Type A Program
-127-
K-6Page 2 of 3
FAIRVIEW BOARD OF EDUCATIONSCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2015(continued)
Section I - Summary of Auditor’s Results(continued)
State Awards
Dollar threshold used to distinguish between type A and type B programs: $300,000
Auditee qualified as low-risk auditee? X yes no
Type of auditor’s report issued: unmodified
Internal control over financial reporting:
1. Material weakness(es) identified? yes X no
2. Significant deficiencies identified that arenot considered to be material weaknesses? yes X none reported
Any audit findings disclosed that are required to be reportedin accordance with NJ OMB Circular Letter 04-04? yes X no
GMIS Number(s) Name of State Program
495-034-5120-089/ 495-034-5120-078/ State Aid Cluster:495-034-5120-084/ Special Education Categorical495-034-5120-083/ Aid/Equalization Aid/Security Aid/Under495-034-5120-098/ Adequacy Aid/PARCC Readiness Aid/Per495-034-5120-097 (A) Pupil Growth Aid 495-034-5094-003 (A) Reimbursed TPAF Social Security Contribution
Note: (A) Tested as Major Type A Program.
-128-
K-6Page 3 of 3
FAIRVIEW BOARD OF EDUCATIONSCHEDULE OF FINDINGS AND QUESTIONED COSTSFOR THE FISCAL YEAR ENDED JUNE 30, 2015
(continued)
Section II – Financial Statement Findings
NONE
Section III – Federal Awards and State Financial Assistance Findings and Questioned Costs
NONE
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K-7
FAIRVIEW BOARD OF EDUCATIONSUMMARY SCHEDULE OF PRIOR YEAR AUDIT FINDINGS
FOR THE FISCAL YEAR ENDED JUNE 30, 2015
Status of Prior Year Findings
NONE
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